The Sarbanes-Oxley Act of 2002 Increased Supervisory Oversight by

question 59

Multiple Choice

The Sarbanes-Oxley Act of 2002 increased supervisory oversight by

• A)giving the FDIC the authority to review independent audits.
• B)increasing the SEC's budget to supervise securities markets.
• C)creating a new Department of Conflict Resolution.
• D)reducing the penalties for obstruction of an official investigation.

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Definitions:

Common Stock

Common Stock represents equity ownership in a corporation, granting holders voting rights and a share in the company's profits through dividends.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders, indicated on the balance sheet.

Net Income

The conclusive profit of a corporation post-deduction of all operational costs and taxation from the aggregate revenue.

Cash Dividends

Payments made by a corporation out of its earnings to its shareholders, usually in the form of cash.