The Committee That Was Formed in 1985 to Study and Report

question 12

Multiple Choice

The committee that was formed in 1985 to study and report on the factors that can lead to fraudulent financial reporting is the:

• A) Treadway committee
• B) Cohen committee
• C) House Subcommittee on Oversight and Investigations
• D) Mintz and Morris committee

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Definitions:

Cash Flow

The total amount of money being transferred into and out of a business, capturing the company's operational, investing, and financing activities.

Cost Of Capital

The minimum return rate a company needs to achieve on its investments to preserve its market valuation and draw in financing.

Cash Flow

The total sum of cash and cash-like assets moving in and out of a company.

NPV

Net Present Value, a method used in capital budgeting to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.