Which of These Is Not Generally Regarded as a Reason

question 12

Multiple Choice

Which of these is not generally regarded as a reason for the spate of dubious accounting practices by public companies which led to the enactment of the Sarbanes-Oxley Act in the USA and similar legislation in other jurisdictions?

• A)Pressure on managers to meet investors' unrealistic expectations for continually rising profits.
• B)Greed by executives.
• C)Lack of accounting standards.
• D)Too rapid growth financed by borrowing, which leads to a liquidity crisis.

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Definitions:

Stethoscope

A medical instrument used for listening to sounds produced within the body, particularly the heart and lungs, in order to diagnose conditions.

Body Sounds

The noises produced within the body that can be heard during a medical examination, such as heartbeats or lung sounds.

Examination Light

A focused light source used in medical settings to illuminate the examination area for clearer observation.

Flexible Arm

An adjustable arm apparatus often used in machinery or equipment to hold or manipulate items or tools at various angles.