If a Publicly Traded Corporation Misstated Its Accounting Filings to the SEC,the

question 4

Multiple Choice

If a publicly traded corporation misstated its accounting filings to the SEC,the "clawback" provision in the Sarbanes-Oxley Act gives the corporation the right to recover:

• A) Dividends earned by the company's CEO and CFO
• B) Interest earned by the company's CEO and CFO
• C) Capital gains earned by the company's CEO and CFO on stock bought within 12 months after the date of the misstated financial statements
• D) Capital gains earned by the company's CEO and CFO on stock realized by sale within 12 months after the date of the misstated financial statements

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Definitions:

FASB Conceptual Framework

The Financial Accounting Standards Board (FASB) Conceptual Framework is a coherent system of interrelated objectives and fundamentals that is intended to lead to consistent standards.

Qualitative Characteristics

The attributes that make the information provided in financial statements useful to users, including relevance, understandability, reliability, and comparability.

Recognition And Measurement

The principles determining when and how economic events should be recognized in the financial statements and at what amounts they should be recorded.

Additional Business Income Tax

A tax that may be levied on businesses in addition to the standard income tax, based on various criteria such as location or type of business activity.