Regarding Liability for Negligence to Third Parties,under the Restatement Test,an

question 51

True/False

Regarding liability for negligence to third parties,under the Restatement test,an accountant is liable to known third-party users of the accountant's work product and also to those in the limited class whose reliance on the work the accountant specifically foresaw.

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Definitions:

Days' Sales in Receivables

A financial ratio that measures the average number of days it takes a company to collect payment after a sale has been made.

Accounts Receivable

Accounts receivable represents money owed to a company by its customers for goods or services delivered on credit.

Inventory Turnover

A measure of the number of times inventory is turned into goods sold during the year, computed by dividing the cost of goods sold by the average inventory.

Inventory Management

The practice of overseeing and controlling the ordering, storage, and use of components that a company uses in the production of the items it sells, as well as the management of finished products available for sale.