In 2007, Which U

question 38

Multiple Choice

In 2007, which U.S.firm showed the first indication of significant problems in the financial sector?

• A)AIG 
• B)Bear Stearns 
• C)J.P.Morgan Chase 
• D)Lehman Brothers

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Definitions:

Uncollectible Accounts Receivables

Accounts receivable that a company does not expect to collect and must write off as a loss because the debtor is unable to pay the owed amount.

Merchandise

Goods that are bought and sold in business; the commodities or items that a business trades in.

Journal Entry

A record in the books of accounts that represents a single financial transaction, documented in chronological order and showing the debits and credits for each transaction.

Terms N/30

Payment terms indicating that an invoice must be paid within 30 days of the invoice date.