One Outcome from the SEC Investigation of the "Flash Crash

question 41

Multiple Choice

One outcome from the SEC investigation of the "Flash Crash of 2010" was

• A) a prohibition of short selling.
• B) higher margin requirements.
• C) approval of new circuit breakers.
• D) establishment of electronic communications networks (ECNs).
• E) passage of the Sarbanes-Oxley Act.

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Definitions:

Prepaid Expense

Expenses paid in advance and recorded as assets before they are used or consumed.

Consumed

Consumed refers to the portion of resources, goods, or services that have been used up in the process of generating revenue.

Accounting Period

A specific period of time covered by financial statements, usually encompassing a fiscal quarter or year.

Contra Account

An account used in accounting to record reductions of related accounts, which has a balance opposite to the normal balance of the related account.