The Sarbanes-Oxley Act Was Passed To

question 70

Multiple Choice

The Sarbanes-Oxley Act was passed to:

• A) prevent financial statement fraud at public companies.
• B) replace inventory accounting procedures.
• C) improve the accuracy of the company's financial reporting.
• D) Both A and C are correct.

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Definitions:

Political Risk Factors

The risk of loss resulting from political instability or changes in government policies affecting an investment.

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting liquidity. It's a key indicator of financial health for any business.

Terminal Value

The estimated value of a business or project beyond the explicit forecast period.

Annualized Rate of Return

The annualized rate of return is a way of calculating investment returns on an annual basis, taking into account the effect of compounding over the period.