Due to Various Fraudulent Business Practices and Accounting Coverups in the Early

question 29

Multiple Choice

Due to various fraudulent business practices and accounting coverups in the early 2000s, Congress enacted the Sarbanes-Oxley Act of 2002.The act was responsible for establishing a new oversight board for public accountants called the:

• A) Generally Accepted Accounting Practices for Public Accountants Board.
• B) Public Company Accounting Oversight Board.
• C) Congressional Accounting Oversight Board.
• D) Financial Accounting Standards Board.

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Definitions:

Net Present Value

The Net Present Value (NPV) is a financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time, often used to assess the profitability of an investment.

Minimum Rate

The lowest acceptable rate of return on an investment, often used in the evaluation of projects or financial decisions.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment’s cost.

Net Present Value

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