An Accountant's Liability for Making an Untrue Statement of Fact

question 15

True/False

An accountant's liability for making an untrue statement of fact, or for omitting a material fact required to be stated, in a securities registration statement will usually not, without more, give rise to liability under the Securities Act of 1933.

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Definitions:

Retained Earnings

The portion of a company's profits not paid out as dividends, but reinvested in the business.

Total Utility

The complete satisfaction or fulfillment a person derives from consuming a certain quantity of goods or services.

Successful New Products

Innovations that achieve significant customer acceptance and financial viability within a market.

Total Spending

The aggregate amount of money spent by households, businesses, and the government on goods and services within a certain period.