Which One of the Following Best Describes the Primary Intent

question 17

Multiple Choice

Which one of the following best describes the primary intent of the Sarbanes-Oxley Act of 2002?

• A)Increase the costs of going public
• B)Increase protection against corporate fraud
• C)Limit secondary issues of corporate securities
• D)Decrease the number of publicly traded firms
• E)Increase the number of firms that "go dark"

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Definitions:

Revenue Account

A revenue account is an account that records the income earned from the sale of goods or the provision of services before any expenses are deducted.

Sales to Total Assets Ratio

A financial ratio that measures a company's ability to use its assets to generate sales, calculated by dividing sales by total assets.

Cost of Merchandise Sold

The total cost incurred to purchase or produce the goods sold by a company during a specified period, directly affecting the gross profit.

Report Form

A layout for financial statements where the balance sheet is presented with assets followed by liabilities and equity in a vertical format.