Due to Various Fraudulent Business Practices and Accounting Coverups in the Early

question 53

Multiple Choice

Due to various fraudulent business practices and accounting coverups in the early 2000's, Congress enacted the Sarbanes-Oxley Act of 2002. The Act was responsible for establishing a new oversight board for public accountants called the

• A) Generally Accepted Accounting Practices for Public Accountants Board.
• B) Public Company Accounting Oversight Board.
• C) Congressional Accounting Oversight Board.
• D) None are correct.

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Definitions:

Screened Out

The process of eliminating candidates or options that do not meet predefined criteria.

Implicit Costs

Implicit costs are the opportunity costs of using resources owned by the firm for its own use instead of other purposes.

Explicit Costs

Money paid out to different parties during the operation of a business, covering expenses like employee salaries, leasing costs, and material purchases.

Opportunity Costs

The value of the next best alternative forgone as a result of making a particular choice.