Foundations Of Financial Management
17th Edition
ISBN: 9781260013917
Author: BLOCK, Stanley B., HIRT, Geoffrey A., Danielsen, Bartley R.
Publisher: Mcgraw-hill Education,
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Question
Chapter 1, Problem 15DQ
Summary Introduction
To explain:The way that the Sarbanes-Oxley Act of 2002 impacts the financial reporting of a corporation.
Introduction:
Sarbanes-Oxley Act, 2002:
Sarbanes-Oxley Act, 2002 is an act under which a board of five members is constituted. Undertaking the responsibility of maintaining the quality of audits, establishing standards of audits, and setting up rules and regulations for the independence of the auditors are some of the roles of this board. The main focus of this act is to ensure that publicly-listed companies fairly present actual reports of their financial statements.
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Which of the following regarding GAAP is true?a. GAAP is an abbreviation for generally appliedaccounting principles.b. Changes in GAAP always affect the amount of incomereported by a company.c. GAAP is the abbreviation for generally acceptedaccounting principles.d. Changes to GAAP must be approved by the SenateFinance Committee.
True (t) or False (f)
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Foundations Of Financial Management
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