QuestionJune 16, 2025

The Sarbanes-Oxley Act is also known as Generally Accepted Accounting Principles. True or False True False

The Sarbanes-Oxley Act is also known as Generally Accepted Accounting Principles. True or False True False
The Sarbanes-Oxley Act is also known as Generally Accepted Accounting Principles.
True or False
True
False

Solution
4.3(263 votes)

Answer

False Explanation 1. Identify the Sarbanes-Oxley Act The Sarbanes-Oxley Act is a U.S. federal law enacted in 2002 to protect investors from fraudulent financial reporting by corporations. 2. Identify Generally Accepted Accounting Principles (GAAP) GAAP refers to a common set of accounting principles, standards, and procedures that companies must follow when they compile their financial statements. 3. Compare Definitions The Sarbanes-Oxley Act and GAAP are distinct; one is a law, and the other is a set of accounting standards.

Explanation

1. Identify the Sarbanes-Oxley Act<br /> The Sarbanes-Oxley Act is a U.S. federal law enacted in 2002 to protect investors from fraudulent financial reporting by corporations.<br /><br />2. Identify Generally Accepted Accounting Principles (GAAP)<br /> GAAP refers to a common set of accounting principles, standards, and procedures that companies must follow when they compile their financial statements.<br /><br />3. Compare Definitions<br /> The Sarbanes-Oxley Act and GAAP are distinct; one is a law, and the other is a set of accounting standards.
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