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When an Accountant Negligently Prepares a Financial Statement Knowing That

Question 32

Multiple Choice

When an accountant negligently prepares a financial statement knowing that the client intends to use it in obtaining a loan from a bank, the accountant will be liable to whichever lender actually makes the loan under the __________rule.


A) known user
B) contact
C) foreseeable user.
D) privity

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