Accounting Scandals Quiz

What is the main cause of accounting scandals?

• Greed

• Market fluctuations

• Lack of regulation

• Incompetence

Which company was accused of hiding massive losses to disguise its true value?

• Enron

• General Electric

• Lehman Brothers

• AIG

Who was involved in a Ponzi scheme that wiped out the life savings of investors worldwide?

• Bernie Madoff

• John Flannery

• Kenneth Lay

• Jeffrey Skilling

Which company went bankrupt after misrepresenting its financial assets, constituting the largest bankruptcy case in U.S. history at the time?

• Lehman Brothers

• Enron

• General Electric

• AIG

Which multinational insurance company acknowledged securities fraud to the SEC?

• Lehman Brothers

• General Electric

• Enron

• AIG

What law was passed to shield investors from fraudulent financial reporting by corporations after the accounting scandals of the early 2000s?

• Volcker Rule

• Glass-Steagall Act

• Sarbanes-Oxley Act

• Dodd-Frank Wall Street Reform and Consumer Protection Act

Which company collapsed due to multiple financial offenses, taking with it the massive accounting firm Arthur Andersen?

• Lehman Brothers

• General Electric

• AIG

• Enron

What was the name of the energy, commodities, and services company that misled regulators with fake holdings and off-the-books accounting practices?

• Lehman Brothers

• AIG

• Enron

• General Electric

Which company had been named the #1 'Most Admired Securities Firm' by Fortune Magazine just one year before its collapse?

• Enron

• AIG

• Lehman Brothers

• General Electric

What was the name of the stockbroker involved in a highly publicized Ponzi scheme?

• Jeffrey Skilling

• Kenneth Lay

• John Flannery

• Bernie Madoff