Which of the Following Statements Is True of the False

question 9

Multiple Choice

Which of the following statements is true of the False Claims Act?

• A)It creates new crimes and raises penalties to as much as 25 years of imprisonment along with heavy fines.
• B)It forbids fraud in government contracts and rewards those who help stop fraud.
• C)It requires publicly traded companies to establish internal control systems designed to assure the accuracy of financial information.
• D)It requires publicly traded companies to disclose whether they have adopted an ethics code for senior financial management,and if not,why they have not done so.

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Definitions:

Sales-Type Lease

A lease arrangement where the lessor recognizes profits from both the sale of the leased asset and the interest on the lease payments.

Unguaranteed Residual Value

The estimated end-of-lease value of an asset that is not guaranteed by the lessee or a third party.

Gross Profit

The difference between sales revenue and the cost of goods sold before deducting selling, general, and administrative expenses.

Cost of Goods Sold

Cost of Goods Sold (COGS) is the direct costs attributed to the production of the goods sold by a company, including the cost of materials and labor.