CAPITAL RATIONING Definition

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CAPITAL RATIONING is restrictions put of the amount planned for new expenditures.

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SARBANES-OXLEY ACT (SOX) contains sweeping reforms for issuers of publicly traded securities, auditors, corporate board members, and lawyers. It adopts tough new provisions intended to deter and punish corporate and accounting fraud and corruption, threatening severe penalties for wrongdoers, and protecting the interests of workers and shareholders. The Sarbanes-Oxley Act of 2002, was signed into law by US President George W. Bush and became effective on July 30, 2002.

REASONABLE CERTAINTY is the degree of certainty that would be found to be in existence by a reasonable person.

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