Which of the Following Rules Provides That an Accountant Is

question 51

Multiple Choice

Which of the following rules provides that an accountant is liable only for negligence to third parties who are members of a limited class of intended users of the client's financial statements?

• A)Section 552 of the Restatement (Second)of Torts
• B)the foreseeability standard
• C)the Ultramares doctrine
• D)the due diligence defense

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Definitions:

Aggregate Demand Curve

A curve that illustrates the total demand for goods and services in an economy at various price levels.

Capital Stock

The total amount of physical, financial, and human capital available in an economy, used to produce goods and services.

Gross Investment

The total amount of investment spent on new fixed investment plus replacement investment, without accounting for depreciation.

Net Investment

The total amount invested in buying new capital and replacing depreciated capital within a specific period.