If a Corporation Must Restate Its Financial Statements Due to Miss-Conduct

question 6

Multiple Choice

If a corporation must restate its financial statements due to miss-conduct, what must the CEO and CFO do?

• A) Remove themselves from their positions within the corporation.
• B) Form an internal control review committee.
• C) Issue a stock-bonus to all shareholders.
• D) Disgorge themselves of any profits from the sale of the company's securities, bonuses, or general incentive compensation.

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Definitions:

Cash Dividends

Money paid to shareholders by a corporation, typically a share of the company’s profits.

Aggregation

The process of combining multiple units or factors into a single group or total.

Net Working Capital

A financial metric indicating how well a company can fulfill its immediate financial liabilities, achieved by subtracting current liabilities from its current assets.

Aggregation

The process of combining multiple sets of data or items into a single group or total.