Which of the Following 2 Firms Survived as Investment Banks

question 68

Multiple Choice

Which of the following 2 firms survived as investment banks following the most recent financial crisis?

• A)Morgan Stanley and Bear Stearns.
• B)Goldman Sachs and Merrill Lynch.
• C)Lehman Brothers and Morgan Stanley.
• D)Merrill Lynch and Lehman Brothers.
• E)None of the options.

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Definitions:

Allowance Method

An accounting technique used to estimate and account for doubtful accounts receivable and adjust the amount of accounts receivable reported on the balance sheet.

Accounts Receivable

Money owed to a company by its customers for sales or services on credit, considered a current asset on the balance sheet.

Allowance for Doubtful Accounts

A contra-asset account used to estimate and offset the amount of receivables that may not be collected.

Uncollectible Accounts

Accounts receivable that a company does not expect to collect due to customer defaults.