New York follows the contact rule in determining when third persons can sue accountants for negligence

Indicate whether the statement is true or false


True

Business

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Which of the following accounts would not appear on the balance sheet of a lessee company recording a capital lease?

a. Accumulated depreciation on the leased asset b. Lease obligation in the current liability section c. Lease obligation in the long-term liability section d. Rent expense on the income statement

Business

Which of the following is prepared directly after the cash budget?

a. Overhead budget b. Production budget c. Budgeted balance sheet d. Capital expenditures budget

Business

Incentive awards are utilized mainly to encourage long-term performance

Indicate whether the statement is true or false

Business

Angela sued Tom for battery. Angela was awarded $30,000 for future medical expenses. Five years after the award, Angela realizes that her medical expenses will far exceed $30,000 . Under the single recovery principle,

a. Angela will be able to submit the additional medical bills to the court for payment. b. Tom will have to pay the additional medical bills. c. Tom will have a qualified privilege and only have to pay a portion of the additional medical expenses. d. Angela will have no recourse against Tom or the court for the medical expenses as long as the original award was reasonable.

Business