The Sarbanes-Oxley Act Called for ________

question 65

Multiple Choice

The Sarbanes-Oxley Act called for ________.

• A)increased pollution control measures from the government
• B)more disclosure and transparency of corporate financial information
• C)limited accountability of directors and executives of corporates
• D)more social contribution from companies in the United States

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Definitions:

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is kept by the company for reinvestment or to pay off debt.

Functional Currency

The functional currency is the currency of the primary economic environment in which an entity operates and conducts its business transactions.

Balance Sheet Items

Components that make up a balance sheet, including assets, liabilities, and shareholders' equity.

Historic Rate

The exchange rate used to convert foreign currency transactions to the reporting currency at the date of the transaction, for accounting purposes.