Under Section 11(a) of the 1933 Act, accountants are:
A. liable only if privity of contract is with the purchaser.
B. liable only to purchasers who relied upon the omissions or falsities in the registration statements.
C. liable for defective registration statements unless they can prove that they exercised due diligence.
D. not liable to any purchaser of securities issued pursuant to a defective registration statement.
Answer: C
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Shutters Company adopted a defined benefit pension plan on January 1 . 2014 . Shutters amortizes the prior service cost over 1 . years and funds prior service cost by making equal payments to the fund trustee at the end of each of the first ten years. The service cost is fully funded at the end of each year. The following data are available for 2014: Service cost
.......................................... $440,000 Prior service cost: Amortized ........................................... 166,800 Funded .............................................. 228,800 If interest cost for 2014 is equal to the return on plan assets, then Shutters's prepaid pension cost at December 31 . 2014, is a. $228,800. b. $166,800. c. $62,000. d. $0
Gamma Corporation has sales of $120,000, a contribution margin of $48,000, and a net operating income of $12,000. The company's degree of operating leverage is:
A. 4.0 B. 10.0 C. 4.8 D. 2.5
The three phases of the training process include all of the following, EXCEPT the:
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