The Gramm-Leach-Bliley Act

question 59

Multiple Choice

The Gramm-Leach-Bliley Act:

• A)requires financial institutions to ensure the security of customer data.
• B)specifies best practices in information systems security and control.
• C)imposes responsibility on companies and management to safeguard the accuracy of financial information.
• D)outlines medical security and privacy rules.
• E)identifies computer abuse as a crime and defines abusive activities.

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Definitions:

Net Income

A company's total earnings or profit, calculated as revenue minus costs of goods sold, expenses, taxes, and other deductions.

Equity Method Investment

A method of accounting for investments in which the investor has significant influence over the investee, but not full control, typically between 20% and 50% ownership.

Outstanding Shares

The total number of shares of a corporation's stock that have been issued and are currently owned by shareholders, including those held by institutional investors and restricted shares.

Journal Entries

Journal entries are the initial records of financial transactions in the accounting process, indicating the debit and credit impact on specific accounts.