The accounting issues at failed savings and loan institutions included:
A)The failure to provide adequate allowances for loan losses
B)The failure to disclose dubious deals between the S&Ls and some of its major customers
C)The existence of inadequate controls to prevent inadequate allowances and control for dubious deals
D)All of the above

Question

Quizplus · Accepted Answer

The accounting issues at failed savings and loan institutions included all of the above factors. The failure to provide adequate allowances for loan losses, the failure to disclose dubious deals between the S&Ls and some of its major customers, and the existence of inadequate controls to prevent inadequate allowances and control for dubious deals were all contributing factors to the failure of many savings and loans institutions.

The Accounting Issues at Failed Savings and Loan Institutions Included