The Sarbanes-Oxley Act of 2002 Requires That a Company's Chief

question 95

Multiple Choice

The Sarbanes-Oxley Act of 2002 requires that a company's chief executive officer and chief financial officer must comply with which of the following?

• A)Open personal lines of credit.
• B)Hire an ethics officer.
• C)Set procedures and guidelines for the board of directors.
• D)Hire a diversity officer.
• E)Personally certify financial reports.

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Definitions:

Accounting Methods

Systems used by a company to keep track of its financial transactions and to prepare financial statements, such as cash basis or accrual basis accounting.

Bad News Earnings Surprises

Occur when a company reports lower earnings than market analysts' expectations, often leading to a negative reaction in the stock market.

Stock Returns

The gain or loss on a stock investment, typically expressed as a percentage of the investment's initial cost.

Earnings Announcement Date

The specific date on which a company publicly releases its financial performance for a specific period, usually quarterly or annually.