A Firm Which Opts to "Go Dark" in Response to the Sarbanes-Oxley

question 59

Multiple Choice

A firm which opts to "go dark" in response to the Sarbanes-Oxley Act:

• A) must continue to provide audited financial statements to the public.
• B) must continue to provide a detailed list of internal control deficiencies on an annual basis.
• C) can provide less information to its shareholders than it did prior to "going dark".
• D) can continue publicly trading its stock but only on the exchange on which it was previously listed.
• E) ceases to exist.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, typically reported on the income statement as a non-operating cost.

Tax Purposes

Considerations or transactions carried out to comply with tax regulations or to optimize tax efficiency.

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.

Creditors' Protection

Legal and financial mechanisms in place to ensure that creditors can reclaim some value from a borrower in case of default, insolvency, or bankruptcy.