Which Act Protects Investors by Improving the Accuracy and Reliability

question 6

Multiple Choice

Which act protects investors by improving the accuracy and reliability of corporate disclosures?

• A) Sarbanes-Oxley Act
• B) Identity Theft and Assumption Deterrence Act
• C) CAN-Spam Act
• D) None of the above

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Definitions:

Residual Income

The net income that exceeds the minimum required return on investment or capital; often used as a performance measure in managerial accounting.

Investment Opportunity

An option to allocate resources with the expectation of generating a return or profit in the future.

Turnover

In business, refers to the rate at which employees leave a company and are replaced by new hires; can also refer to the total sales in a given period.

Turnover

A financial metric indicating the rate at which a company's inventory is sold and replaced over a period.