Which of the Following Legislations Can a State Adopt in Determining

question 50

Multiple Choice

Which of the following legislations can a state adopt in determining whether an accountant is liable in negligence to third parties?

• A) Section 2(b) of the Robinson-Patman Act
• B) Section 5 of the Federal Trade Commission
• C) Section 552 of the Restatement (Second) of Torts
• D) Section 16 of the Clayton Act

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, thereby preparing the books for the next period.

Total Revenues

The total amount of income generated by a business from its normal business operations, including sales of goods or services, before any expenses are deducted.

Income Summary

An account used in the closing process during the accounting cycle that summarizes the results of operations—revenues and expenses—before transferring the net income or loss to the owner's equity.

Revenue

The total amount of money generated by the sale of goods or services related to a company's primary operations before any expenses are deducted.