Use the Fact Situation in Q10 to Answer the Related

question 49

Multiple Choice

Use the fact situation in Q10 to answer the related question that follows. Also in this case,

• A)the ISP can be sued,but will not be found liable.
• B)the ISP can be sued and will be found strictly liable.
• C)the ISP cannot be sued because it only provides a service.
• D)the ISP cannot be sued because an ISP is like an unincorporated association.
• E)none of the above

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Definitions:

Adjustment

An entry made in the accounts to correct an error or account for a transaction not recorded in the regular accounting period.

Available-for-sale Securities

Financial assets that are bought with the intention of selling before their maturity date, but not classified as held-for-trading or held-to-maturity investments.

Stockholders' Equity

It represents the ownership interest of shareholders in the assets of a company, after deducting liabilities.

Income Statement

A financial statement that shows a company's revenue, expenses, and profits over a specific period of time.