An Accountant Who Fails to Perform for a Client as Agreed

question 13

True/False

An accountant who fails to perform for a client as agreed has breached their contract, and the client has the right to pursue a claim for damages.

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Definitions:

Nonparticipating

Refers to an insurance policy, financial instrument, or other contracts that do not entitle the holder to share in the profits or surplus of the issuer.

Cash Dividends

Payments made by a corporation to its shareholders out of its profits or reserves in the form of cash.

Earnings per Share

A financial ratio calculated by dividing a company's net income by its number of outstanding shares of common stock.