At a Minimum, the Duty of Care of the Accountant

question 13

Multiple Choice

At a minimum, the duty of care of the accountant entails compliance with which of the following?

• A) Generally acknowledged accounting principles only.
• B) Generally acknowledged auditing standards only.
• C) Generally accepted accounting principles only.
• D) Generally accepted auditing standards and generally acknowledged accounting principles.
• E) Generally accepted accounting principles and generally accepted auditing standards.

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Definitions:

Junk Bonds

High-yield bonds that carry a higher risk of default compared to investment-grade bonds, typically issued by companies with lower credit ratings.

Real Estate Loans

Loans specifically provided for purchasing property, including both residential and commercial properties.

Medium Of Exchange

Items sellers generally accept and buyers generally use to pay for a good or service; the primary job of money.

Keynesian Motive

An economic theory proposed by John Maynard Keynes, suggesting that demand for goods and services is the driving force in an economy, particularly during times of economic downturn.