The Sarbanes-Oxley Act applies only to companies whose stock is traded on public exchanges.OTrueFalse

Sarbanes-Oxley Act of 2002: Due to the corporate accounting scandals the U.S. congress enacted The…

Answered: The Sarbanes-Oxley Act applies only to…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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21.Retained earnings a. Normally approximates a company's cumulative net income less dividends declared b. Can be subject to a statutory restriction by a state. c. Can be subject to restrictions due to loan agreements. d. Can be subject to appropriation by a corporation's directors to limit dividends.
True or False. Please explain. Shares cannot be transferred without the consent of the other shareholders.
which term is used to describe a feature added by major stock exchanges to restrict program trading in extreme market circumstances
Please assist by providing the correct answer for 1.1,1.2 and 1.3 1.1 There are limitations on the issuing and redemption of redeemable shares. Which ONE of the following is NOT an actual limitation? Select one: a. Redeemable shares cannot be issued if the only shares that the company has issued are redeemable shares. b. Redeemable shares can only be redeemed if they are fully paid-up. c. When redeeming shares, the company must pay fully for them at the time of redemption, unless the terms of redemption provide for a later date. d. Private companies can only issue redeemable shares if authorised by their articles. 1.2 Identify the statement that is correct regarding the paid up capital. Select one: a. If any of the shareholders has not paid amount on calls, such an amount may be called as ‘calls in arrears’. Therefore, paid up capital is equal to the called-up capital plus call in arrears. b. It is that portion of the called up capital which has been actually received from the…
The accounting assumption or principle of __________________ is being violated if a company that is a party to major litigation that it may lose decides not to include the information in its financial statements because of the risk of it having a negative impact on the company’s share price. a. Going concern. b. Historical cost. c. Expense recognition. d. Full disclosure.
While corporations might have multiple issues of bonds or preferred stock, no corporations have multiple classes of common stock. While corporations might have multiple issues of bonds or preferred stock, no corporations have multiple classes of common stock. True False Give typing answer with explanation and conclusion
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6. Why do firms accept underpricing of their initial public offerings (IPOs)?
Which of the following is FALSE regarding preferred stock Preferred dividends are generally fixed A company is NOT allowed to omit the preferred dividends and still pay dividends to the common stockholders Preferred stockholders have the right to elect a pro-rata portion of the board of directors Preferred stock trades in the secondary market between investors Most preferred stock is cumulative, meaning that if the company is behind on paying preferred dividends, it must be brought up to date before dividends can be paid to the common stockholders.
[11] True or False (Provide explanation). Common stock represents a residual interest in a corporation.
With the use of cases and/or examples, explain FOUR (4) of the following terms as used in company law: Fixed charges Preference shares Registration of charges No par value Capital maintenance
A company may not issue its shares_________. Select one: a. directly to investors b. through an investment institution that specializes in market the marketing of shares c. only after receiving the full issue value d. only at par value of shares

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The Sarbanes-Oxley Act applies only to companies whose stock is traded on public exchanges. OTrue False