Which of the following statements is true of accountants' liability?
A) The plaintiff only has to prove breach of duty in malpractice actions against accountants that are based on negligence.
B) All states follow the same guidelines to determine to whom an accountant can be held liable.
C) The Ultramares Doctrine allows third parties to sue accountants.
D) The smallest minority of states holds the accountant liable to any reasonably foreseeable user of the statement the accountant prepares.
D
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If a parent company has four subsidiaries, there are five separate legal entities represented in this group
Indicate whether the statement is true or false
Michelle is an active participant in the rental condominium property she owns. During the year, the property generates a ($15,000) loss; however, Michelle has sufficient tax basis and at-risk amounts to absorb the loss. If Michelle has $115,000 of salary, $10,000 of long-term capital gains, $3,000 of dividends, and no additional sources of income or deductions, how much loss can Michelle deduct?
A. $11,000. B. $15,000. C. $4,000. D. $0; losses from rental property are passive losses and can only be offset by passive income. E. None of the choices are correct.
Which of the following best describes costs assigned to the product under the variable costing method?Direct labor (DL)Direct materials (DM)Variable selling and administrative (VSA)Variable manufacturing overhead (VOH)Fixed selling and administrative (FSA)Fixed manufacturing overhead (FOH)
A. DL, DM, VOH, and FOH. B. DL, DM, VSA, and VOH. C. DL, DM, and VOH. D. DL, DM, FSA, and FOH. E. DL and DM.
The Americans with Disabilities Act of 1990 requires that employers accommodate the needs of applicants or employees with disabilities who are not otherwise qualified for the work
Answer the following statement true (T) or false (F)