The Sarbanes-Oxley Act Was Passed in 2002 to Seek to Prevent

question 1

True/False

The Sarbanes-Oxley Act was passed in 2002 to seek to prevent corporate scandals by increasing corporate responsibility,creating new financial disclosure requirements,creating new criminal offenses,and creating an Accounting Oversight Board.

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Definitions:

Uncollectible Accounts

Accounts receivable that a company is unable to collect, often leading to a write-off as a bad debt expense.

Expropriation

The governmental seizure of private property without the owner's consent, often with compensation.

Extraordinary Item

Extraordinary items were once classified on income statements to denote unusual or infrequent transactions that were distinct from regular business operations, but accounting standards have evolved to limit or exclude these classifications.

Extraordinary Losses

Non-recurring losses that are unusual in nature and infrequent in occurrence, significantly impacting a company's financial performance.