A Code of Ethics for Financial Professionals Is Important Under

question 58

Multiple Choice

A code of ethics for financial professionals is important under Sarbanes-Oxley because:

• A) It strengthens the relationship between financial professionals and shareholders
• B) It supports the certification of financial statement requirement
• C) It decreases the likelihood of whistleblowing
• D) It enhances the ethics of the audit committee

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Definitions:

Break-even Sales

The amount of revenue from sales at which a business neither makes a profit nor incurs a loss.

Fixed Expenses

Fixed expenses are costs that do not vary with the level of production or sales, providing stability to a company's budget, such as rent or insurance.

Operating Period

The time frame during which a company conducts its principal operations, typically one year for most financial reporting.

Break-even Sales

The amount of revenue needed to cover total costs, both fixed and variable, with no profit or loss.