State whether each of the following statements is true or false. and explain why. 1. The Securities Act of 1933 applies to the abovedescribed public offering of securities. 2. The accounting rm has potential liability to any person who acquired the stock. 3. An insider who had knowledge of all the facts regarding the loans to the two paper corporations could nevertheless recover from the accounting firm. 4. In court, investors who bought shares in Dandy Container need only show that they sustained a loss and that failure to explain the nature of the loans in question constituted a false statement or misleading omission in the nancial statements. 5. The accountants could avoid liability if they could show they were not negligent. ft. The accountants could avoid or reduce the damages asserted against them if they could establish that the drop in the stock's market price was due in whole or in part to other causes . T. The Securities and Exchange Commission would defend any action brought against the accountants in that the SEC examined and approved the registration statement