Which of the Following Statements Is True in the Context

question 12

Multiple Choice

Which of the following statements is true in the context of financial statements and auditors?

• A) The information contained in the financial statements can enable a stockholder to calculate the ROIC of a company in which he or she invests.
• B) Publicly traded companies in the United States are not required to file quarterly or annual reports with the SEC.
• C) So far, there have been no cases in which auditors were found cooperating with companies to misrepresent financial information.
• D) The SEC requires that the accounts be audited by a committee formed by the board members and senior employees of the company.
• E) Sarbanes-Oxley Act in 2002 barred CEOs and CFOs from endorsing their company's financial statements.

---

Definitions:

Resources Expended

The amount of materials, labor, and capital used in the production of goods or services.

Federal Government

The national government of a federal country, which holds the authoritative powers conferred to it by a constitution.

Deficit

A deficit occurs when an entity's expenditures exceed its revenues over a specified period, often referring to government budgets.

Surplus

The situation in which the quantity supplied of a good exceeds the quantity demanded, often resulting in downward pressure on the price.