Historically, an Accountant's Liability for Negligence Extended Only to the Client

question 36

True/False

Historically, an accountant's liability for negligence extended only to the client and third party beneficiaries.

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Definitions:

Account

A record used to keep track of and manage financial transactions within a financial institution, company, or another entity.

Liability

Financial obligations or debts that an individual or organization owes to others, which must be settled over time.

Savings Account

A bank account that earns interest and is typically used by account holders for saving money over a period of time.

Rate Of Return

A measure used to evaluate the financial performance of an investment, calculating the gain or loss relative to the asset's initial cost.