The ________ Was Passed by Congress in 2002 to Establish

question 107

Multiple Choice

The ________ was passed by Congress in 2002 to establish strict accounting and reporting rules in order to make senior managers more accountable and to improve and maintain investor confidence.

• A) Freeman-Madoff Act
• B) Free Trade Act
• C) Caux Principles Act
• D) Glass-Steagall Act
• E) Sarbanes-Oxley Act

Distinguish the accounting treatments for stock investments based on the level of influence (insignificant, significant, and controlling).

Understand the accounting for realized and unrealized gains or losses for different types of securities.

Identify how changes in fair value of investments impact financial statements and the differences between available-for-sale, held-to-maturity, and trading securities.

Grasp the concept of comprehensive income and its components.

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Definitions:

Virtue Ethics

The ethical system which proposes that a decision is ethical when it promotes positive character traits such as honesty, courage, or fairness.

Categorical Imperatives

Fundamental principles proposed by Immanuel Kant that require unconditional adherence without consideration of personal desires or consequences.

The Good Life

A concept describing a life filled with happiness, well-being, and prosperity, often including moral and ethical richness.

Virtue Ethics

An approach to ethics that emphasizes the character of the moral agent rather than the consequences or rules governing their actions.