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Tasya [4]
1 year ago
8

when the savings and loan industry collapsed in the 1980s, all of the big accounting firms, except for arthur andersen, experien

ced heavy losses because of: a. their liability for audit work on the collapsed financial institutions. b. the unsound value of deferred taxes in their earnings. c. their organizational incentive systems and culture shifts. d. the absolute standards on which they relied.
Business
1 answer:
Goshia [24]1 year ago
8 0

All major accounting companies, with the exception of Arthur Andersen, experienced significant losses when the savings and loan sector collapsed in the 1980s since they were in charge of performing audit work on failing financial institutions.

The first significant financial crisis following the Great Depression was the Savings and Loan Crisis of the 1980s and 1990s. Customers and taxpayers suffered as a result of the crisis, which saw thousands of savings and loan organizations close their doors and billions of money wasted. There were 4,039 savings banks in operation in 1980, and between 1980 and 1994, over 1,300 of them collapsed. The fund that protected the deposits of savings banks was destroyed as a result of the high percentage of failures, and the remaining institutions as well as the taxpayers were hit hard by the costs.

The United States had a financial crisis in the 1980s as a result of both rising high-yield debt instruments, or "junk bonds," and surging inflation. As a result, more than half of the country's Savings & Loans institutions failed. The origin of the S & L crisis was the 1934 expansion of federal deposit insurance to S & Ls. Because all S & Ls paid the same insurance premium rate regardless of how safe or dangerous they were, deposit insurance was actuarially unsound from the start.

Learn more about the loan sector collapsed:

brainly.com/question/26654992

#SPJ4

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10 percent decrease in consumer incomes leads to a 20 percent decrease in the quantity demanded of good D. Instructions: Round y
Katyanochek1 [597]

Answer:

Income elasticity = 2

Normal good

Explanation:

Below is the given values:

Percentage decrease in consumers income = 10%

Percentage decrease in quantity demanded = 20%

Use the below formula to find the income elasticity:

Income elasticity = % change in quantity demanded / % in income

Income elasticity = -20/-10

Income elasticity = 2

Since the elasticity is 2 that means good is normal good.

4 0
2 years ago
In most organizations, who is primarily responsible for appraising an employee's performance
ivanzaharov [21]
It is and should be the managers job to do that
8 0
3 years ago
. The income elasticity of demand for medical care is 1.35. This implies that: a. if income decreases by 1%, the quantity demand
Andre45 [30]

Answer:

The correct answer is a).

Explanation:

The income elasticity of demand refers to the percentual variation of quantity demanded of a certaing good in response to a percentual variation in income.

If the income elasticity of demand for medical care is 1.35,

<em>a. if income decreases by 1%, the quantity demanded for medical care decreases by 1.35%.</em> TRUE, this is what the definition implies.

<em>b. if the price of medical care increases by 1%, the quantity demanded for medical care decreases by 1.35%. </em>FALSE. In this elasticity, the sign is relevant. This income elasticity implies that changes in income and medical care expenses have the same sign.

<em>c. if the income of the average consumer increases by 1 dollar, the quantity demanded for medical care will increase by 1.35 units of care.</em> FALSE. The elasticity relates percentual variations, not absolute value variations.

<em>d. if income increases by 1%, the quantity demanded for medical care decreases by 1.35%.</em> FALSE. The same as point b.

5 0
3 years ago
Why is it difficult for the federal government to increase or decrease spending
vovangra [49]

Answer:

here you go bruv

Explanation:

The New York Times published a chart today that succinctly explains why it is so hard to cut the federal government's spending: the programs that people want to cut don't cost very much, and the programs that cost a lot people don't want to cut.

5 0
2 years ago
On June 10, Blossom Company purchased $7,100 of merchandise from Sunland Company, terms 4/10, n/30. Blossom Company pays the fre
Marysya12 [62]

Answer:

June 10

Dr Inventory $7,100

Cr Accounts payable $7,100

June 11

Dr Inventory $350

Cr Cash $350

June 12

Dr Accounts payable $600

Cr Inventory $600

June 19

Dr Account payable $6,500

Cr Cash $6,240

Cr Inventory $260

Explanation:

Preparation of a separate journal entries for each transaction on the books of Blossom Company.

Books of Blossom Company

June 10

Dr Inventory $7,100

Cr Accounts payable $7,100

June 11

Dr Inventory $350

Cr Cash $350

June 12

Dr Accounts payable $600

Cr Inventory $600

June 19

Dr Account payable $6,500

($7,100-$600)

Cr Cash $6,240

($6,500-$260)

Cr Inventory $260

(4%*$6,500)

8 0
3 years ago
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