The impact of accounting scandals of 2001 and 2002 was especially important because
A. it increased investor uncertainty about corporate fundamentals, and the major accounting companies both consult and audit their clients, leading to a conflict of interest.
B. the major accounting companies both consult and audit their clients, leading to a conflict of interest.
C. the accounting industry had so many employees.
D. it increased investor uncertainty about corporate fundamentals.
Answer: A
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Suppose a country has a real interest rate of 4 percent and an inflation rate of 3 percent. If the income tax rate is 20 percent, then the after-tax real interest rate is
A) 2.6 percent. B) 7.0 percent. C) 5.6 percent. D) 4.0 percent. E) 1.4 percent.
Relative to free trade, when a tariff is imposed in a market for an imported good,
A) the consumer surplus in that market increases. B) the producer surplus in that market decreases. C) the total surplus in that market decreases. D) tariff revenue decreases. E) deadweight loss decreases.
Which of the following institutions plays the role of an international lender of last resort?
A) the World Bank B) the International Monetary Fund C) the European Monetary System D) the Federal Reserve System
Teenage unemployment rates have consistently been much higher than the overall unemployment rate and black teenagers have fared worse than white teenagers
a. True b. False Indicate whether the statement is true or false