Quibble Game Company's liabilities exceed its assets.Quibble hires Roo & Slay,an accounting firm,to prepare a balance sheet.Through Roo & Slay's negligent omissions,the sheet shows a positive net worth.Town Bank relies on the balance sheet to make a loan to Quibble.When Quibble defaults,Town files a suit against Roo & Slay.Under the Restatement rule,Roo & Slay is most likely
A) liable because Roo & Slay owed a duty of care to Quibble.
B) liable because Roo & Slay owed a duty to any foreseeable user.
C) liable if Roo & Slay knew that Town would rely on the balance sheet.
D) not liable because Roo & Slay and Town were not in privity.
Correct Answer:
Verified
Q21: Pluto accuses Quark,an accountant,of committing defalcation.This is
A)embezzlement.
B)general
Q27: Estes,an accountant,contracts to perform services for Frasier.In
Q33: Mona,an accountant,prepares for NuTech Corporation a financial
Q38: Gert,an accountant,contracts to conduct an audit for
Q44: Doug is an accountant whose clients include
Q45: Grover Nut Company files a suit against
Q45: Hadley, an accountant, accumulates working papers while
Q47: Craig is an accountant whose clients include
Q52: Ezra,an accountant,intentionally misstates a material fact to
Q53: Marquis Company's liabilities exceed its assets,but the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents