Which of the Following Could Most Likely Have Prevented the Accounting

question 97

Multiple Choice

Which of the following could most likely have prevented the accounting scandals of the early 2000s and the global financial crisis?

• A) adopting a narrow shareholder perspective
• B) separating economic interests and social needs
• C) practicing effective corporate governance
• D) adopting the principles of shareholder capitalism

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Definitions:

Cash Balance

The amount of cash or cash equivalents a company or individual possesses at any given time.

Disbursements

The act of paying out or distributing money, often by a business for various expenses.

Equipment Account

An account that tracks the cost of equipment a company owns, minus any accumulated depreciation.

Liability Account

An account that records obligations or amounts owed to others that will require a future outflow of resources.