Who Told Fannie Mae That When It Came to Compliance

question 65

Multiple Choice

Who told Fannie Mae that when it came to compliance with accounting rules, "You weren't even on the page"?

• A) Its external auditor, Deloitte Touche
• B) The OFHEO
• C)   Both a and b
• D) Fannie Mae did not have trouble with its accounting; it was a victim of the subprime lending market collapse

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Definitions:

Contribution Margin Ratio

A financial metric that measures the proportion of sales revenue that exceeds variable costs, indicating how much of the revenue is available to cover fixed costs and generate profit.

Operating Income

Earnings from a company's principal business activity, excluding expenses and revenues from non-operational sources.

Operating Income

A measure of a company's earning power from ongoing operations, equal to revenues minus operating expenses, but before taxes and interest.

Margin Of Safety

Indicates the possible decrease in sales that may occur before an operating loss results.