Which Section of the Securities Act Makes Accountants Civilly Liable

question 10

Multiple Choice

Which section of the Securities Act makes accountants civilly liable for misstatements and omissions of material facts made in the registration statements required by the SEC?

• A)Section 12 of the Securities Act of 1933
• B)Section 12 of the Securities Act of 1934
• C)Section 13 of the Securities Act of 1935
• D)Section 11 of the Securities Act of 1933
• E)Section 10 of the Securities Act of 1934

Understand how various types of transactions (cash receipts, cash payments, revenues, expenses) are recorded.

Identify the components and purposes of accounts found in the chart of accounts.

Distinguish between asset, liability, and equity accounts and their normal balances.

Understand the role of revenue and expense accounts in determining business profitability.

---

Definitions:

Consumption

The total value of goods and services consumed by households and government within a country.

Disposable Income

The budget left for household savings and spending after the deduction of income taxes.

Autonomous Consumption

The level of consumption that occurs when income is zero, representing basic necessities that individuals will purchase regardless of their income.

APC

It is defined as the proportion of income that goes into consumption expenses, termed as the Average Propensity to Consume.