The Sarbanes-Oxley Act of 2002 Was Passed in Order to

question 14

Multiple Choice

 The Sarbanes-Oxley Act of 2002 was passed in order to

• A) control pollution and protect the environment in the long term.
• B) increase taxation levels for companies doing business abroad.
• C) eliminate the practice of bribery.
• D) control the manipulation of accounts by the top management in firms.

Recognize the importance of ending negative messages on a positive note to maintain relationships.

Understand the significance of audience reaction and shock absorbance in the delivery of negative news.

Acknowledge the role of professional advice in preparing for the delivery of negative organizational announcements.

Comprehend the implications of social media dynamics in the context of negative news.

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Definitions:

Multiple Step Income Statement

An income statement that separates operational revenues and expenses from non-operational ones to calculate net income.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries have been made, used to prepare financial statements.

Gross Profit

The difference between revenue and the cost of goods sold, indicating the efficiency of core operations before overhead costs.

Gross Profit Percentage

A financial metric that shows the portion of revenue that exceeds the cost of goods sold, expressed as a percentage.