Which of the Following Was Enacted by the Government to Prevent

question 61

Multiple Choice

Which of the following was enacted by the government to prevent more corporate accounting scandals?

• A)Federal Accounting Standards Board Act.
• B)Securities and Exchange Act.
• C)Sarbanes-Oxley Act.
• D)Clayton Act.

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Definitions:

Financial Statement

A formal record of the financial activities and position of a business, individual, or other entity, typically comprising the balance sheet, income statement, and cash flow statement.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenue, expenses, and profits.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equities) or income statement categories (revenues and expenses) is represented as a proportion of the total account.

Net Income

The final amount of money a company earns, after deducting all its costs including taxes and operational expenses, from its total income.