The Disclosure of Conflict Minerals in SEC Filings Is Historically

question 19

Multiple Choice

The disclosure of conflict minerals in SEC filings is historically significant because:

• A) The Dodd-Frank Act revolutionized depletion accounting rules for natural resource properties
• B) Investors now will be better able to evaluate the risks of firms that are highly dependent upon minerals from war-torn areas of the world
• C) Investors receive superior information that better enables them to hold companies accountable if they engage in socially irresponsible behavior
• D) Investors now will be better able to evaluate the foreign currency risks to which global corporations are subject

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Definitions:

Bonds Payable

Long-term debt instruments issued by corporations or governments to raise capital, with an obligation to pay interest and repay principal at a specified date.

Unamortized Premium

The portion of a bond premium that has not yet been amortized or gradually written off over the life of the bond.

Consolidated Income Statement

A financial statement that shows the combined income of a parent company and its subsidiaries, presenting the financial performance of the entire group.