In Its Investigation of ZZZZ Best, the House Subcommittee on Oversight

question 39

Multiple Choice

In its investigation of ZZZZ Best, the House Subcommittee on Oversight and Investigations looked into:

• A) Why the board of directors failed to uncover the fraud at ZZZZ Best
• B) How the company was able to create 80% or more fictitious revenue
• C) How the company was able to create cookie jar reserves
• D) All of these

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Definitions:

Shareholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, indicative of the company’s net worth.

Common Stock

Shares representing ownership in a corporation, giving holders rights to dividends and influence through voting.

Additional-Paid In Capital

The amount of money paid by investors above the par value of the shares, also known as share premium.

Financing Sources

Various methods a company uses to raise capital or funds, including debt financing, equity financing, and internal generated funds.