The Restatement Approach to Third-Party Negligence Suits Against Accountants

question 15

Multiple Choice

The Restatement approach to third-party negligence suits against accountants:

• A)requires that the accountant be unaware of the third parties.
• B)holds that the accountant is liable only to those third parties who are unreasonably foreseeable.
• C)does not protect the typical investor who was unknown to the accountant and his/her client when the financial statements were prepared.
• D)requires that the accountant be unaware of the third parties reliance on the financial statements.

---

Definitions:

Gas Sales

Transactions involving the purchase and sale of gas, either in its natural form or after processing, typically for the purpose of energy production or heating.

Complements

Goods or services that are used together, where the demand for one item increases the demand for another.

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in its price, with higher elasticity indicating a greater response.

DVDs

Digital Versatile Discs, a type of optical storage media used for storing data, including video and audio, now overshadowed by digital streaming services.