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

question 96

Multiple Choice

Which of the following is true of the Sarbanes-Oxley Act of 2002?

• A) It follows the traditional approach to corporate governance.
• B) It established the Public Company Accounting Oversight Board.
• C) It requires external auditors to certify financial reports.
• D) It requires a separate team to be formed to certify financial reports.

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Definitions:

Net Profit

Represents the amount of money a company retains after subtracting all its expenses, taxes, and costs from its total revenue.

Net Income

represents the total earnings of a company after deducting all expenses and taxes from total revenue.

Return on Investment

The gain or loss generated on an investment relative to the amount of money invested.

Selling Margin

The difference between the cost of a product and its selling price, indicating the profit made on the sale.