The Public Company Accounting Oversight Board, Which Has Authority to Set

question 396

Multiple Choice

The Public Company Accounting Oversight Board, which has authority to set accounting standards and discipline CPAs for misconduct, was established by the:

• A) Safe Harbor Act of 1995
• B) Securities Act of 1933
• C) Securities Exchange Act of 1934
• D) Securities Litigation Reform Act of 1995
• E) none of the other choices are correct

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Definitions:

Employee Salaries

Fixed payments made to employees for their services over a specified period, typically monthly or bi-monthly.

Budgeting

The process of creating a financial plan to manage revenue and expenses for a specific period, often key to strategic planning in businesses and personal finance management.

Activity Variance

The difference between the budgeted amount of an activity and the actual amount incurred.

Net Operating Income

Refers to a company's income after operating expenses have been deducted, but before income taxes and interest expenses are subtracted.