Which of the Following Is True Regarding the Case Opener,the

question 19

Multiple Choice

Which of the following is true regarding the case opener,the case in which Martha Stewart was charged with insider trading after selling stock in a company based on information that her stockbroker gave her that the CEO of the company and his daughter had just sold all of their company stock?

• A) She was not convicted of insider trading and sentenced to jail.
• B) After a jury trial she was found innocent of insider trading and did not go to jail for anything.
• C) She was not convicted of insider trading, but she went to jail for convictions relating to statements made to SEC investigators.
• D) She pled guilty to lesser offenses on all counts, paid a large fine, and all charges were dismissed.
• E) Charges were dismissed after she agreed to repurchase all shares of stock.

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Definitions:

Asset Account

An account that records the value of assets owned by a company, such as cash, inventory, and equipment.

Financial Statement

A record that details the financial activities and conditions of a business or individual, commonly including the balance sheet, income statement, and cash flow statement.

Financial Statement

Formal records of the financial activities and position of a business, individual, or other entity, typically including the income statement, balance sheet, and statement of cash flows.

Normal Balance

The side (debit or credit) where increases are recorded for a particular type of account, reflecting the account's normal balance position in the accounting equation.