Which of the Following Resulted in a Federal Law Passed

question 14

Multiple Choice

Which of the following resulted in a federal law passed in 1995 that significantly reduced potential damages in securities-related litigation?

• A) Private Securities Litigation Reform Act
• B) Public Securities Damages and Settlements Act
• C) Racketeer Influenced and Corrupt Organization Act
• D) U.S. Securities Claims Reform Act

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Definitions:

Journal Entry

A record in the books of accounts that represents a single financial transaction, documented in chronological order and showing the debits and credits for each transaction.

Terms N/30

Payment terms indicating that an invoice must be paid within 30 days of the invoice date.

Allowance Method

An accounting technique used to account for bad debts, estimating and setting aside a portion of accounts receivable that may not be collectible.

Percent of Sales Method

A financial forecasting model that estimates future elements of a financial statement as a percentage of sales.