In Which of the Following Ways Can an Accountant Avoid

question 64

Multiple Choice

In which of the following ways can an accountant avoid liability under Section 18(a) of the Securities Exchange Act of 1934?

• A)if the accountant can show that the misleading statement was made to protect the company from Chapter 7 or Chapter 11 bankruptcy
• B)if the accountant acted recklessly,rather than negligently
• C)if the accountant had served as the plaintiff's employee within 180 days before the filing of the Section 18(a)action
• D)if the accountant can show that the plaintiff had knowledge of the false statement when the securities were purchased or sold

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Definitions:

Unemployment Benefits

Payments made by the government or a social insurance scheme to unemployed individuals who meet certain eligibility criteria.

Aggregate Demand

The combined demand for goods and services across an economy, pegged at a particular overall price level during a predetermined time period.

Constitutional Amendment

A formal change or addition proposed or made to a constitution, which alters its content and legal ordering.

Balanced Budget

A financial plan whereby revenues and expenditures are equal, resulting in no deficit for the given period.