The Accounting Scandals of the Early 2000s Led Many People

question 360

Multiple Choice

The accounting scandals of the early 2000s led many people to question the legitimacy of

• A) ratio analysis as a means of evaluating the performance of a firm.
• B) the five-member Public Company Accounting Oversight Board (PCAOB) under the Securities and Exchange Commission (SEC) that had been created to oversee the accounting industry.
• C) publishing financial information about a firm on the Internet.
• D) allowing an accounting firm to do both consulting and auditing work for the same company.

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Definitions:

Substrate

A surface or material on or from which an organism lives, grows, or obtains its nourishment, or a substance acted upon by an enzyme.

Amylase

Amylase is an enzyme that helps in the breakdown of starches into sugars and is found in saliva and pancreatic fluid.

Salivary Amylase

An enzyme found in saliva that begins the digestive process by breaking down starches into simpler sugars.

Oligosaccharides

Short chains of monosaccharide units bound together, found in many plants and used in various biological roles.