Traditional ultramares rule-accounting principles

Assignment Help Other Subject

Reference no: EM13334562

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 prepared and seriously inaccurate.

What are the consequences of Perkin’s failure to follow generally accepted accounting principles?

Under the traditional Ultramares rule, can Tucker recover damages from Perkins? Please Explain.

Reference no: EM13334562

Questions Cloud

Calculate the work done by the applied force : a 50 kg trunk is pushed 6 m along a level floor at a constant speed of 4.2m/s.if the coefficient of friction is 0.20, calculate the work done by the applied force

Explain what rate is heat released or absorbed : what rate is heat released/absorbed (express in kW and state whether released or absorbed) when 4050 mol/h of liquid water are produced

To what extent does conditioned hypereating affect : To what extent does conditioned hypereating affect you in your own personal lives?

Determine the initial kinetic energy of the ball : A ball with a mass of .100 kg is on a spring that is 10.0 m above the ground with a spring constant of 543 N/m and has been compressed .125 m. Determine the initial kinetic energy of the ball

Traditional ultramares rule-accounting principles : What are the consequences of Perkin’s failure to follow generally accepted accounting principles? Under the traditional Ultramares rule, can Tucker recover damages from Perkins? Please Explain.

Compute the payback statistic for project x : Compute the payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 10 percent and the maximum allowable payback is 5 years.

Compute the may cash outlay for purchases of raw material : Determine the number of units of product K to be manufactured in May and compute the May cash outlay for purchases of raw material A.

Find the total magnetic flux through the plastic : An open plastic soda bottle with an opening diameter of 2.2cm is placed on a table. find the total magnetic flux through the plastic of the soda bottle

Discussed and implemented the mvc design pattern : Find another design pattern which could be used for web based development and write a synopsis on it, pointing out whether it would be applicable for use within your project or not. Comment as applicable on design patterns that other class members..

User Account

All Pages