The Sarbanes-Oxley Act of 2002 Requires That CEOs and CFOs

question 109

True/False

The Sarbanes-Oxley Act of 2002 requires that CEOs and CFOs of publicly-listed companies must reveal off-balance-sheet finances and vouch for the accuracy of information provided.

---

Definitions:

Acid-Test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with quick assets (cash, marketable securities, and accounts receivable).

Financial Data

Quantitative information about a company's financial position, performance, and cash flow, used for analysis and decision-making.

Acid-Test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with its most liquid assets without having to sell inventory.

Financial Data

Quantitative information about financial conditions, transactions, and performance of a person, company, or entity.