The Ernst & Ernst V

question 100

Short Answer

The Ernst & Ernst v.___________________ case concluded that auditors might be liable for gross negligence under the Securities Exchange Act of 1934 even in the absence of scienter.

---

Definitions:

Creditor Balances

The amounts owed by a business to its creditors, representing liabilities for goods, services, or loans provided to the business.

Cash Payments Journal

An accounting ledger that tracks all cash outflows or payments made by a business.

Revenue Journal

A specialized accounting journal used to record all sales transactions of a business, tracking the inflow of revenue.

Adjusting Journal Entries

Entries made in accounting records at the end of an accounting period to allocate income and expenditures to the correct period.