The Sarbanes-Oxley Act of 2002 Requires the Chief Executive Officer

question 82

Multiple Choice

The Sarbanes-Oxley Act of 2002 requires the chief executive officer of a publicly-traded corporation to _____. 

• A)keep confidential the procedures used to construct and report financial statements
• B)certify financial reports that are submitted to the Securities and Exchange Commission
• C)pursue interests that result in large gains for them and large losses for stockholders
• D)oversee the corporation's audit and attest the audit report
• E)construct the firm's financial statements

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Definitions:

Net Operating Loss Carryforward

This is a tax provision that allows a company to apply a tax year's net operating losses to future years' profits in order to lower tax liabilities.

US GAAP

The Generally Accepted Accounting Principles in the United States, a framework of accounting standards, principles, and procedures used in the financial reporting of companies.

IFRS

International Financial Reporting Standards, a set of accounting principles that provide guidelines for financial reporting and are recognized globally.

Deferred Taxes

Deferred taxes are future tax liabilities or assets, reflecting the temporary differences between the accounting income and taxable income.