Which of the Following Is True of the Public Company

question 5

Multiple Choice

Which of the following is true of the Public Company Accounting Oversight Board?

• A) All members of the Public Company Accounting Oversight Board have to be certified public accountants (CPAs).
• B) The Public Company Accounting Oversight Board was created by the Tax Reform Act of 1976.
• C) The Securities and Exchange Commission (SEC) has oversight and enforcement authority over the board and its functioning.
• D) The Public Company Accounting Oversight Board lacks the power to initiate any disciplinary actions against defaulting accountants.

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle.

Discounted Note

A type of debt instrument that is sold or redeemed for less than its face value but whose actual value matures to the full face amount at a later date.

Face Value

The nominal or original value stated on a financial instrument, such as a bond or stock certificate.

Gross Pay

The total amount of money earned by an employee before any deductions or taxes are taken out.