Which of the Following Statements Is True of the Dodd-Frank

question 146

Multiple Choice

Which of the following statements is true of the Dodd-Frank Act?

• A) It played a major role in the U.S. economy meltdown of the first decade of the 21st century.
• B) It required large firms in the financial sector to hold more equity and less debt in their capital structures.
• C) It weakened government oversight of financial markets.
• D) It required large firms in the financial sector to increase their debt-to-equity ratio.

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Definitions:

Post-closing Trial Balance

The trial balance prepared after closing entries have been posted to ensure that debits and credits still balance, marking the end of an accounting period.

Normal Balance

The side of an account (debit or credit) that is expected to increase; for assets and expenses, it’s debit; for liabilities, equity, and revenue, it's credit.

Financial Statement

A financial statement is a formal record of the financial activities and position of a business, person, or other entity.

Permanent/Temporary

Categories representing either enduring, long-term attributes or conditions, or those that are short-lived and transient.