What Is the Main Purpose of the Sarbanes-Oxley Act of 2002

question 3

Multiple Choice

What is the main purpose of the Sarbanes-Oxley Act of 2002?

• A) to increase the accuracy and reliability of corporate disclosures of financial information
• B) to ensure that CEOs are adequately compensated for the risks they face in terms of corporate governance
• C) to amend NAFTA to be more favorable to U.S. interests
• D) to limit the ability of drug companies to engage in direct-to-consumer advertising
• E) to limit the ability of the media to obtain confidential corporate information

---

Definitions:

Transactions

Economic activities or events that affect the financial position of a company, recorded in its accounting records.

Acquisition Costs

The total cost incurred to acquire an asset or service, including the purchase price and any additional costs necessary to bring the asset into working condition.

Property

Legal rights or interests in land, buildings, or other assets, which can include ownership of the asset itself and usage rights.

Equipment

Tangible property used in operations, such as machinery, computers, and tools, that is not intended for sale.