Which of the Following Did Not Contribute to the Financial

question 29

Multiple Choice

Which of the following did not contribute to the financial crisis?

• A)The use of market-to-market accounting standards
• B)Solid credit ratings from the ratings agencies
• C)The extension of credit to high-risk borrowers
• D)The merger of JPMorgan Chase and Bear Stearns
• E)All of the options contributed to the financial crisis.

---

Definitions:

Non-Current Assets

Long-term resources owned by a company, such as property, plant, and equipment, expected to provide economic benefits beyond one year.

Noncurrent Asset

Long-term resources owned by a company, expected to provide value for more than one year, such as property, plant, and equipment.

Allowance Method

The allowance method is an accounting technique used to account for uncollectible receivables, allowing companies to estimate bad debts as an expense.

Direct Write-Off Method

An accounting procedure where uncollectible accounts receivable are directly written off against income at the time they are deemed noncollectible.