Which of the Following Provides the Broadest Standard for Holding

question 51

Multiple Choice

Which of the following provides the broadest standard for holding accountants liable to third parties for negligence?

• A) due diligence defense
• B) the foreseeability standard
• C) the Ultramares doctrine
• D) exclusionary rule

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Definitions:

Shareholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities; also known as stockholders' equity.

Equity Multiplier

A financial leverage ratio that measures the portion of a firm's assets that is financed by stockholder's equity.

Profit Margin

A financial ratio that shows the percentage of revenue that remains as profit after all expenses have been paid, including costs, taxes, and interest.

Return On Assets

A performance metric that measures the efficiency of a company in generating profit from its assets.