Short Essay Questions 1.What is the role of the Securities and Exchange Commission? 2.Veronica Ingram is the CEO of a small corporation whose stock is traded on public stock exchange. She has been...

Short Essay Questions

1.What is the role of the Securities and Exchange Commission?

2.Veronica Ingram is the CEO of a small corporation whose stock is traded on public stock exchange. She has been concerned with the high cost of producing and distributing annual financial statements. She has proposed that the corporation stop producing these financial reports which would save the company $240,000 annually. Briefly explain to Ms. Ingram why her proposal cannot be adopted.

3.Why might corporate management want to lobby the FASB?

4.Describe the three components of the statement of cash flows.

5.The Sarbanes-Oxley Act was passed by Congress in 2002 in response to a series of financial and accounting scandals. The purpose of the Act was to bolster corporate governance and restore confidence in the financial reporting system. Describe one of the new things that the management of a US public corporation is required to do under this act.