Odette, an Accountant, Contracts to Perform Services for Percy

question 14

Multiple Choice

Odette, an accountant, contracts to perform services for Percy. Odette acts in good faith and conforms to generally accepted accounting principles, but makes an incorrect judgment. Odette is most likely​

• A) ​liable if Odette failed to discover a defalcation.
• B) ​liable if Odette failed to discover a fraud.
• C) ​liable if Odette failed to discover an impropriety.
• D) ​not liable.

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Definitions:

Business Transaction

Any event or exchange involving a transfer of value between two or more parties in a business context.

Assets

Resources owned by a company that have economic value and can provide future benefits.

Future Benefits

The projected economic advantages to be received from an investment, often used in evaluating the potential return from capital projects or investments.

Net Income

The amount of earnings remaining after all expenses, including taxes and costs, have been subtracted from total revenue.