1. A study examining how incentives arising out of debt contracts affect managers accounting choices found that the most common violations of accounting-based covenants occurred with:

Multiple Choice

A. net worth and working capital restrictions.

B. mergers and acquisitions restrictions.

C. leveraged buyout restrictions.

D. debt restructures.

2. Information about a companys executive compensation practices can be found in a companys:

Multiple Choice

A. annual report.

B. form 10-K.

C. proxy statement.

D. form 10-Q.

3. Many loan agreements have financial covenants that rely on:

Multiple Choice

A. floating GAAP.

B. fixed GAAP.

C. flexible GAAP.

D. regulatory accounting procedures (RAP).