Financial scandals around the turn of this century at Enron, WorldCom, Adelphia, HealthSouth, and others led to which of the following?
A)greater reliance on nonstandard accounting practices
B)less reliance on nonstandard accounting practices
C)new laws and governmental rulings that limit business's discretionary actions
D)revocation of laws and rulings that limit business's discretionary actions

Question

Quizplus · Accepted Answer

The financial scandals led to new laws and governmental rulings, such as the Sarbanes-Oxley Act, that sought to limit business's discretionary actions and increase transparency in accounting practices. This was done in order to prevent similar scandals from occurring in the future. Therefore, choice C is the best answer.

Financial Scandals Around the Turn of This Century at Enron