Because of the Major Accounting and Fraud Scandals in the Early

question 9

Multiple Choice

Because of the major accounting and fraud scandals in the early 2000s against major business such as Enron, WorldCom, Global Crossing, and Arthur Andersen, which of the following federal legislative actions was passed?

• A) RICO.
• B) The False Claims Act.
• C) The Imminent Harm to People Act.
• D) The Fraud Recovery Act.
• E) The Sarbanes-Oxley Act.

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Definitions:

Canadian Dollars

Canadian dollars (CAD) refer to the official currency of Canada, which is used for all transactions within the country.

Translation Gain/Loss

The gain or loss resulting from the conversion of foreign currency amounts into the functional currency of a business during the consolidation of financial statements.

Functional Currency

The currency of the primary economic environment in which a company operates, typically used in reporting its financial statements.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use, reducing its book value.