How Did the Fallout from the Sharpstown Stock Fraud Scandal

question 40

Multiple Choice

How did the fallout from the Sharpstown stock fraud scandal immediately impact the Texas legislature?

• A) The House moved to limit the speaker's power through a modified seniority system for committee appointments.
• B) Through a public referendum, it was voted that appropriations bills could no longer originate from the Senate.
• C) An executive order was issued by the governor to force all legislators to reveal their personal stock holdings.
• D) The judiciary stepped in and put forth a rule that all legislation concerning the banks had to go through the Texas comptroller.
• E) The governor created a special board comprised of bank industry experts and federal auditors to oversee every bill concerning banks and insurance.

---

Definitions:

Work In Process

Units of product that are only partially complete and will require further work before they are ready for sale to the customer.

Beginning Of Production

The stage at which a manufacturing or production process commences.

Weighted-Average Method

An inventory costing approach that assigns a weighted average cost to each unit of inventory, used in valuing the cost of goods sold and ending inventory.

Process Costing System

An accounting method used to allocate costs to units of product in continuous processes or industries where the products are indistinguishable from each other.