A privity relationship means that:
A. A party has a contractual obligation
B. A party may sue if fraud has taken place
C. A party's financial liability is limited
D. A party may be a user of the financial statements
Answer: A
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The establishment of which of the following groups has resulted in a challenge to the FASB’s standard-setting powers?
a. The Governmental Accounting Standards Board (GASB) b. The Emerging Issues Task Force (EITF) c. The Accounting Standards Executive Committee (AcSEC) d. All of the above
One indication that a salary program is not externally competitive is increased turnover of employees
Indicate whether the statement is true or false.
The annual exclusion applies to cumulative gifts made to each donee over the course of the year.
Answer the following statement true (T) or false (F)
Which of the following is not necessarily a benefit of using ethics as a business strategy?
A) Firm's profits increase B) Affords opportunity for planning C) Creates goodwill in the community D) All of the above are benefits.