The SEC Had

question 24

Multiple Choice

The SEC had:

• A) A primary role in the development of the AICPA Code of Professional Conduct
• B) A secondary role in the development of the AICPA Code of Professional Conduct
• C) No role in the development of the AICPA Code of Professional Conduct, but it retains the authority to override this code of conduct concerning the behavior of both internal and external auditors performing services relating to the financial activities of regional and local financial institutions
• D) No role in the development of the AICPA Code of Professional Conduct

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenue.

Outstanding Shares

The total number of shares of a corporation's stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares.

Stock Repurchase

An action taken by a corporation to repurchase its own shares from the market, thereby decreasing the total number of shares available.

Residual Dividend Policy

A financial strategy where dividends paid to shareholders are based on the earnings left after all operational and capital expenses, as well as growth investments, have been covered.