An Accountant Is Not Liable for an Omission in a Registration

question 38

True/False

An accountant is not liable for an omission in a registration statement to a purchaser of securities if the omission had no causal connection to the purchaser's loss.

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Definitions:

Utilities Expense

Costs incurred by a business for basic services such as electricity, gas, water, and sewerage, recognized in the accounting period in which they are incurred.

Sales Revenue

The total amount of money generated from selling goods or services before any costs or expenses are deducted.

Calendar-Year

A one-year period that begins on January 1 and ends on December 31, used for financial and tax reporting purposes.

Annual Financial Statements

Reports prepared yearly that give an overview of a company’s financial condition, including balance sheet, income statement, and cash flow statement.