The Severity of the 2008 Stock Market Crash Was Evidenced

question 17

Multiple Choice

The severity of the 2008 stock market crash was evidenced by the

• A) repeal of the Glass-Steagall Act and creation of the Consumer Protection Bureau.
• B) availability of subprime mortgages.
• C) corrupt practices of Bernard Madoff.
• D) drop of the Dow Jones index to 8,000 points.

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Definitions:

Purchases Returns and Allowances

Refers to a reduction in the cost of purchases due to items being returned or allowances provided by the seller for damaged or unsatisfactory goods.

Merchandise Inventory

Goods that a company holds for the purpose of sale to customers in the ordinary course of business.

Merchandise Inventory

Goods or products that a company holds for the main purpose of selling them to customers.

Balance Sheet

The balance sheet is a financial statement that provides a snapshot of a company's financial position, listing assets, liabilities, and shareholders' equity at a specific point in time.