The Sarbanes-Oxley Act Places Responsibility on CEOs and CFOs of Companies

question 75

True/False

The Sarbanes-Oxley Act places responsibility on CEOs and CFOs of companies to certify the fairness of company's financial statements.The Act also created the Public Company Accounting Oversight Board which oversees the public accounting profession.

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Definitions:

Natural Rate

The level of any economic factor, such as unemployment or interest rates, that is unaffected by short-term fluctuations and is determined by long-term factors.

Aggregate-Supply Curve

A curve that shows the quantity of goods and services that firms choose to produce and sell at each price level

Trade-Off

An exchange where getting something of value requires giving up something else of value, typically used in the context of making decisions with limited resources.

Short Run

A period during which at least one of a firm's inputs is fixed and cannot be changed.