The Sarbanes-Oxley Act of 2002 Focuses on Three Factors That

question 40

True/False

The Sarbanes-Oxley Act of 2002 focuses on three factors that affect the accounting reporting environment: ethics,fraud,and managers.

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Definitions:

Estimated Residual Value

The anticipated value of an asset at the end of its useful life.

Obsolescence

The process through which a product or technology becomes outdated and no longer used, often due to advancements or changes in consumer preferences.

Depletion

An accounting method used to allocate the cost of extracting natural resources, such as minerals or timber, from the earth, reflecting the consumption of the resource over time.

Expense Account

An account used in accounting to record costs or expenses incurred by a business or individual for operational purposes.