Everett Is an Accountant Whose Clients Include Finance & Capital

question 28

Multiple Choice

Everett is an accountant whose clients include Finance & Capital, Inc. Under the Ultramares rule, if Everett is negligent in his work for Finance & Capital, he could be liable to Finance & Capital 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:

Saving Rate

The saving rate is the proportion of income that is not spent on consumption, but rather set aside for future use, often expressed as a percentage of total income.

Current Account Deficits

A situation where a country's total imports of goods, services, and transfers are greater than its total exports, indicating a nation is spending more abroad than it is earning.

Foreign Ownership

The situation where companies or assets are owned by investors or entities based outside the country in which the companies operate or the assets are located.

Net Inflow

The difference between the amount of money or resources entering and leaving a system or economy over a specific period.