An Accountant Can Avoid Liability by Proving That His or Her

question 31

True/False

An accountant can avoid liability by proving that his or her negligence was only the proximate cause of the cli?ent's loss.

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Definitions:

Income Statement

A financial statement that shows a company's revenues, expenses, and profits or losses over a specific period of time.

Trial Balance

A report that lists the balances of all general ledger accounts at a certain date, used to verify that the total of all debit balances equals the total of all credit balances.

Journalizing Transactions

The process of recording financial transactions in a company's accounting records, or journals, in chronological order.

Balance Sheet

A statement that outlines an enterprise's assets, liabilities, and the equity held by shareholders, pinpointed to a specific time frame.