The Public Company Accounting Oversight Board (PCAOB)was Created ________

question 80

Multiple Choice

The Public Company Accounting Oversight Board (PCAOB) was created ________.

• A)by the Sarbanes-Oxley Act (SOX)
• B)to perform audits of public companies
• C)to make restitution to investors who were defrauded by the issuance of fraudulent financial reports
• D)to require auditors to take responsibility for the accuracy and completeness of financial reports

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Definitions:

Compounded Quarterly

Related to the calculation of interest which is added to the principal amount at the end of every quarter, or every three months.

Preferred Share

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, often receiving dividends before common shareholders.

Discount Rate

The interest rate that the Federal Reserve charges commercial banks for loans, or a rate used in discounted cash flow analysis to determine the present value of future cash flows.

Compounded Semi-annually

Interest calculation method where the interest is added to the principal twice a year, leading to a growth in the amount at a faster rate than simple interest.