Accounting principles and accounting methods

Assignment Help Other Subject

Reference no: EM13186207

The Ultramares Rule. Larkin, Inc., retains Howard Perkins to manage its books and prepare its financial statements. Perkins, a certified public accountant, lives in Indiana and practices there. After twenty years, Perkins has become a bit bored with generally accepted accounting principles and has adopted more creative accounting methods. Now, though, Perkins has a problem, as he is being sued by Molly Tucker, one of Larkin's creditors. Tucker alleges that Perkins either knew or should have known that Larkin's financial statements would be distributed to various individuals. Furthermore, she asserts that these financial statements were negligently pre- pared and seriously inaccurate. What are the consequences of Perkins's failure to follow generally accepted accounting principles? Under the traditional Ultramares rule, can Tucker recover damages from Perkins? Explain.

Reference no: EM13186207

Questions Cloud

Describe your concerns first responder at world trade center : Describe your concerns as a first responder at the World Trade Center. (For the purpose of your response assume that you do NOT know whether this is a chemical, biological, radiological, nuclear, or simple explosive attack.)

Draw radial velocity curves of a binary consisting : How to draw radial velocity curves of a binary consisting of two identical stars moving in circular orbits that are parallell to our line of sight

Why to insulate central bankers from political pressure : Provide an example of the Fed's actions listed in the textbook or from the October 30th FOMC press release. 4. If the economy is currently in a long-run equilibrium and the central bank increases the money supply, what effect does this have on the ..

What can you conclude about the affect of the rate : Show your results numerically and graphically. What can you conclude about the affect of the rate of return on your retirement plans ?

Accounting principles and accounting methods : The Ultramares Rule. Larkin, Inc., retains Howard Perkins to manage its books and prepare its financial statements. Perkins, a certified public accountant, lives in Indiana and practices there. After twenty years, Perkins has become a bit bored with ..

State bond between sodium and chloride in the nacl molecule : Rank the following bonds from strongest to weakest and provide the bond energy: the bond between hydrogen and oxygen in a water molecule, the bond between sodium and chloride in the NaCl molecule

State the triangle law : the sides in cm of a triangle are x-y, 2into square root of xy and x+y respectively.show that the triangle is a right angled triangle and state the triangle law.

Find the price charged by the new single firm : Suppose two firms 1 and 2 compete in quantities and face a demand curve p = 100 - q. Suppose firm 1 has a constant marginal cost of 10 while firm 2 has a constant marginal cost of 40. Suppose they produce quantities simultaneously. a.Find quantity..

Explain the accuracy in determining the conversion factor : What conclusions can you come to regarding the accuracy in determining the conversion factor? include a statement about the significant figures in this exercise.

User Account

All Pages