Dan is an accountant with Miller & Co.The financial condition of Miller & Co.is not so good,but Dan shows it to be very healthy while preparing its financial statement,knowing that Miller & Co.will show the statement to Chase in seeking financing for its new project.Dan will ________ personally liable to Chase if the new project goes bankrupt,and Chase will be able to recover against Miller based on the liability theory of ________.

Question

Quizplus · Accepted Answer

Dan can be held personally liable to Chase based on the liability theory of actually named third parties because he knowingly prepared and presented misleading financial statements that Chase relied upon in making its financing decision.

Dan Is an Accountant with Miller & Co