Which of the Following Is True of the Public Company

question 5

Multiple Choice

Which of the following is true of the Public Company Accounting Oversight Board?

• A) All members of the Public Company Accounting Oversight Board have to be certified public accountants (CPAs).
• B) The Public Company Accounting Oversight Board was created by the Tax Reform Act of 1976.
• C) The Securities and Exchange Commission (SEC) has oversight and enforcement authority over the board and its functioning.
• D) The Public Company Accounting Oversight Board lacks the power to initiate any disciplinary actions against defaulting accountants.

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Definitions:

Marginal Resource Cost

The additional cost incurred by acquiring or using one more unit of a resource.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy, reflecting a nation's cost of living.

Nominal Wages

The amount of money paid to employees not adjusted for inflation, reflecting the current dollar value of wages.

Real Wages

Pay from employment, recalibrated for price level changes to indicate the true value of work income.