Sarbanes-Oxley Act of 2002 Requires Management to Issue a Yearly

question 2

True/False

Sarbanes-Oxley Act of 2002 requires management to issue a yearly report with their assessment of the effectiveness of internal controls.

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Definitions:

Net Income

The profit amount a company achieves after all its expenses and taxes have been subtracted from its revenue stream.

Owner's Equity

The residual interest in the assets of a company after deducting liabilities, representing the owners' share.

Liabilities

Economic obligations or debts that an entity owes to external parties, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Assets

Properties or items owned by an organization or a person, which have value and can offer future advantages.