Which of the Following Can an Accountant Use as a Defense

question 16

Multiple Choice

Which of the following can an accountant use as a defense to liability under Section 11(a) of the Securities Act of 1933?

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

---

Definitions:

Lease Payments

Regular payments made by a lessee to a lessor for the use of some asset.

After-Tax Lease Payment

The lease payment amount minus any tax savings resulting from deductible lease expenses.

Tax Rate

The rate at which a person or business is taxed on their earnings or profits.

Borrowed Funds

Money that is borrowed from banks or other lenders that must be repaid, often with interest, according to agreed upon terms.