According to the Provisions Set Forth by the Sarbanes-Oxley Act

question 62

Multiple Choice

According to the provisions set forth by the Sarbanes-Oxley Act, the ________, a federal government agency, may issue an order prohibiting any person who has committed securities fraud from acting as an officer or a director of a public company.

• A)United States International Trade Commission
• B)Federal Reserve System
• C)Federal Communications Commission
• D)Securities and Exchange Commission

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold or consumed within one year or within the normal operating cycle of the business, whichever is longer.

Current Ratio

A financial ratio that indicates how well a company can cover its short-term liabilities with its present assets.

Current Liabilities

Short-term financial obligations that are due within one year or within the company's operating cycle, whichever is longer.

Contingent Liability

A potential financial obligation that may occur in the future depending on the outcome of a specific event.