The Sarbanes-Oxley Act (SOX)requires Managers and Auditors of Companies Whose

question 123

True/False

The Sarbanes-Oxley Act (SOX)requires managers and auditors of companies whose stock is traded on an exchange to document and verify the system of internal controls.

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Definitions:

Dividends

Monies disbursed by a business to its owners, often coming from the profit the company makes.

Costs

The monetary valuation of effort, material, resources, time, and opportunity foregone in production and delivery of a good or service.

Retention Ratio

The proportion of a company's net income that is retained rather than paid out as dividends, indicating reinvestment back into the company.

Return on Assets

A financial ratio that indicates how profitable a company is relative to its total assets.