Which of the Following Forms a Part of the Principal

question 4

Multiple Choice

Which of the following forms a part of the principal conclusions reached by the majority of members of the Financial Crisis Inquiry Commission (FCIC) with regard to the causes of the financial crisis?

• A) that there was no systematic breakdown in accountability and ethics
• B) that the financial crisis was unavoidable
• C) that the contribution of over-the-counter derivatives to the crisis was insignificant
• D) that the failures of the credit rating agencies were essential cogs in the wheel of financial destruction

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Definitions:

Financial Statements

Official documentation of a company, individual, or entity's financial transactions and status, usually comprising the income statement, balance sheet, and statement of cash flows.

Internal Accounting Staff

Employees within an organization responsible for overseeing and managing financial records and transactions.

Chief Executive Officer

The highest-ranking executive in a company, responsible for making major corporate decisions, overseeing the overall operations, and acting as the main point of communication between the board of directors and corporate operations.

Generally Accepted Accounting Principles

The standard framework of guidelines for financial accounting used in any given jurisdiction; commonly abbreviated as GAAP.