April Is an Accountant Whose Clients Include Bistro Restaurants Inc

question 58

Multiple Choice

April is an accountant whose clients include Bistro Restaurants Inc. If April is negligent in her work for Bistro, most courts would hold her liable to Bistro and​

• A) ​any third party.
• B) ​no third party with whom the accountant is not in privity or "near privity."
• C) ​third parties who are foreseen users of the work.
• D) ​third parties who are reasonably foreseeable users of the work.

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Definitions:

Parent-Company Method

An accounting approach where the parent company reports its investment in subsidiaries at cost, often used in separate financial statements.

Ownership Risk

The uncertainties faced by an entity's owners due to changes in the business environment, regulatory landscapes, or operational performance affecting the value of their investment.

Share Dilution

the decrease in existing shareholders' ownership percentage of a company as a result of the company issuing new shares.

Government Support

Financial or policy assistance provided by governmental bodies to businesses, industries, or individuals.