When the SEC Brought Charges Against Bernard Madoff and His

question 104

Multiple Choice

When the SEC brought charges against Bernard Madoff and his CFO,it was exercising its power of

• A) political favors.
• B) legislative intervention.
• C) indirect regulation.
• D) lobbying.
• E) direct regulation.

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Definitions:

Adjusting Entry

Log entries drafted at the final phase of a financial period to attribute income and expenses to the period in which they were truly incurred.

Reversing Entries

Entries recorded at the start of a new accounting cycle to negate or reverse adjustments that were documented at the conclusion of the preceding period.

Payment

The act of transferring money or value from one party to another as a form of settlement for goods, services, or obligations.

Unearned Fees

Revenue received by a company for services yet to be performed, recognized as a liability until the services are provided.