The Litigation Reform Act of 1995 Was Passed Because Of

question 16

Multiple Choice

The Litigation Reform Act of 1995 was passed because of:

• A) congressional concern over an excess of frivolous private securities lawsuits.
• B) the financial burdens placed on accountants and other professional advisors due to an excess of frivolous private securities lawsuits.
• C) concern that the investors in a class action lawsuit have their interests fairly represented.
• D) all of the above.

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Definitions:

Cash Receipts Journal

An accounting ledger that tracks all cash inflows or receipts of a business over a period.

Debit To Cash

An accounting entry that increases the cash balance in the company's ledger.

Collections From Customers

The process of receiving payments from customers for goods or services provided or sold.

Control Accounts

General ledger accounts that summarize and control the total of individual accounts found in subsidiary ledgers.