The ________ Is a Rule That Says That an Accountant

question 66

Multiple Choice

The ________ is a rule that says that an accountant is liable only for negligence to third parties who are in privity of contract or in a privity-like relationship with the accountant.

• A) foreseeability standard
• B) Ultramares doctrine
• C) due diligence defense
• D) disclaimer of opinion

---

Definitions:

Financial Liability

An obligation to pay money to another party, including loans, bond issuances, and accounts payable.

Notes Payable

A formal, written agreement to pay a certain amount of money, with interest, by a specified future date.

Deferred Revenue

Income received by a company for goods or services yet to be delivered or performed, recognized as a liability.

Financial Lease

A type of lease in which the lessee essentially takes on the benefits and risks of owning the asset, although legal ownership is retained by the lessor.