Which of the Following Is Not a Provision of the Sarbanes-Oxley

question 88

Multiple Choice

Which of the following is not a provision of the Sarbanes-Oxley Act?

• A)Executives can avoid penalties for fraud by declaring personal bankruptcy.
• B)Stiffer penalties for fraud in terms of monetary fines and jail time.
• C)Public companies must adopt a code of ethics for senior financial officers.
• D)Management must issue a report that indicates whether internal controls are effective at preventing errors and frauD.Executives cannot avoid monetary penalties by declaring personal bankruptcy.

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Definitions:

General Journal

The two-column form used for entries that do not “fit” in any of the special journals.

Notes Receivable

Formal promises in writing that obligate the signer to pay the holder a specified sum of money either on demand or at a future date.

Accounts Receivable

Funds that customers owe to a business for products or services that have been provided but remain unpaid.

Journal Entry

A written record in accounting that documents a business transaction in the ledger.