Which of the Following Is True Regarding the Sarbanes-Oxley Act

question 55

Multiple Choice

Which of the following is true regarding the Sarbanes-Oxley Act?

• A) The Sarbanes-Oxley Act was repealed after the onslaught of corporate scandals in the 2000s.
• B) The Sarbanes-Oxley Act applies only to law firms, requiring that they act ethically.
• C) The Sarbanes-Oxley Act applies only to accounting firms, requiring that they act ethically.
• D) The Sarbanes-Oxley Act requires that public companies disclose whether a code of ethics has been adopted for senior financial officers, including its principal financial officer and principal accounting officer.
• E) The Sarbarnes-Oxley Act applies only to private companies, requiring them to adapt a Code of Ethics.

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Definitions:

Consumer Surplus

The deviation between the overall amount consumers are keen and able to pay for a good or service against the sum actually paid.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual price they receive, measuring producers' benefit.

Tax

A mandatory monetary fee or different kind of charge levied on a taxpayer by a government entity to support government expenditures and various public costs.

Tax Revenue

The income that is gained by governments through taxation, which is used to fund public services and government obligations.