What Sort of Liability Does an Accountant Have Under the Securities

question 32

Multiple Choice

What sort of liability does an accountant have under the Securities Exchange Act of 1934?

• A) Civil liability where there is scienter and  criminal liability where there is a willful violation.
• B) Civil liability only, but no qualification necessary.
• C) Civil liability when there is negligence.
• D) Only criminal liability.

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Definitions:

Corridor Threshold

A term used in pension accounting that refers to the allowable range in fluctuation in the value of pension assets or liabilities; amounts outside this corridor may require amortization to keep the pension's accounting measures stable.

Pension Expense

The annual cost recognized by an employer for its contributions to employees' retirement plans, reflecting the cost of benefits earned by employees during the year.

Pension Funding

The process of allocating financial resources to a pension plan to meet future obligations to retirees.

Upcoming Year

Refers to the next calendar or fiscal year that is approaching and for which plans, budgets, or forecasts are being prepared.