Which of the Following Is Something That the Plaintiff Must

question 61

Multiple Choice

Which of the following is something that the plaintiff must prove in order for an accountant to be liable for damages under Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934?

• A)The accountant was ordinarily negligent.
• B)There was a material omission.
• C)The security involved was stock.
• D)The security was part of an original issuance.

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Definitions:

Rate Variance

The difference between the actual rate paid for something and the expected or standard rate, often used in budgeting and accounting.

Standard Machine-Hours

The predetermined amount of machine time expected to be used for a specific process or production activity, used for costing and efficiency measures.

Fixed Overhead

Fixed expenditures that are unaffected by production or sales volume, like rental fees, employee salaries, and insurance policies.

Volume Variance

A measure used to evaluate the difference between the expected and actual production volumes.