When a Client Sues an Accountant for Failure to Perform

question 76

Multiple Choice

When a client sues an accountant for failure to perform consulting work properly,the accountants' best defense is probably based on the doctrine of

• A) Lack of privity of contract.
• B) Contributory negligence on the part of the client.
• C) Lack of any measurable dollar amount of damages.
• D) No negligence on the part of the consultant.

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Definitions:

Aggregate Demand

The complete demand for all categories of goods and services in an economy, evaluated at a given price level for a particular period.

Inflation

How fast the broad price levels for goods and services climb, undercutting the ability to buy.

Unemployment

The condition of someone being without a job despite actively looking for work, expressed as a percentage of the labor force.

Aggregate Demand

The total demand for all goods and services within a particular market or economy, including consumption, investment, government spending, and net exports.