A Firm Which Opts to "Go Dark" in Response to the Sarbanes-Oxley

question 59

Multiple Choice

A firm which opts to "go dark" in response to the Sarbanes-Oxley Act:

• A) must continue to provide audited financial statements to the public.
• B) must continue to provide a detailed list of internal control deficiencies on an annual basis.
• C) can provide less information to its shareholders than it did prior to "going dark".
• D) can continue publicly trading its stock but only on the exchange on which it was previously listed.
• E) ceases to exist.

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Definitions:

Bond Issue Costs

The expenses associated with the issuance of bonds, including legal, accounting, underwriting fees, and other related costs.

Straight-Line Method

A method of calculating depreciation by evenly allocating the cost of an asset over its useful life.

Effective Interest Method

A technique used in accounting to allocate the interest expense or income of a financial instrument over its lifespan in a way that results in a constant rate on the carrying amount.

Bonds Payable

Long-term liabilities representing a company's commitment to pay a specified amount of money at certain future dates for funds borrowed.