Jim, an Accountant, Is Asked to Prepare a Statement by Clark

question 62

Multiple Choice

Jim, an accountant, is asked to prepare a statement by Clark. This statement provides details about property owned by Clark. Jim is aware that Clark intends to use this statement to obtain a loan from a bank. Which of the following statements is true of this scenario?

• A)In the states that follow the Ultramares Doctrine, the bank cannot sue Jim for malpractice.
• B)The bank can sue Jim for malpractice in all the states in the U.S.
• C)The Ultramares Doctrine allows the bank to sue Jim for malpractice.
• D)The bank cannot sue Clark because a contractual relationship exists between Jim and the bank.

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Definitions:

Sum Of Squares

A statistical technique used to measure the dispersion or variation within a data set by squaring the differences from the mean and summing all the resulting squares.

Observed Errors

The discrepancies between measured values and the true values, often due to measurement limitations or external factors.

Regression Line

A line that best fits the data points on a scatter plot, showing the relationship between the independent and dependent variables.

Regression Analysis

A statistical method for investigating and modeling the relationship between variables, often between one dependent and one or more independent variables.