The near Privity Approach Was Adopted by Courts in Contrast

question 32

Multiple Choice

The near privity approach was adopted by courts in contrast to the strict privity rule of the:

• A) Balancing approach.
• B) Reasonably Foreseeable Users approach.
• C) Ultramares approach.
• D) Restatement approach.

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Definitions:

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and profits.

Depreciation Expense

The allocated portion of the cost of a tangible asset over its useful life, recognized as an expense on a company's income statement.

General Liability Insurance

General Liability Insurance is a type of insurance policy that provides cover to a business for bodily injury, personal injury, and property damage caused by the business’s operations, products, or injuries that occur on the business’s premises.

Adjusting Journal Entry

An entry in accounting that is made at the end of an accounting period to record any unrecognized income or expenses for the period.