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

Business

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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

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One indication that a salary program is not externally competitive is increased turnover of employees

Indicate whether the statement is true or false.

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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)

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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.

Business