The Sarbanes-Oxley Act (SOX)was Passed by Congress in 2002,in Response

question 88

Multiple Choice

The Sarbanes-Oxley Act (SOX) was passed by Congress in 2002,in response to:

• A)financial scandals,including WorldCom and Enron.
• B)financial scandals,including Bernie Madoff and AIG.
• C)financial scandals,including General Motors and Chrysler.
• D)the Troubled Asset Relief Program (TARP).

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Definitions:

Inventory Cost Flow Assumption

An accounting assumption that determines how the cost of inventory is allocated to the cost of goods sold and ending inventory.

Cost of Goods Available

The total cost of goods that are available for sale during a certain period, including goods purchased or manufactured.

Periodic System of Inventory

An inventory system that updates inventory balances at the end of a certain period, involving periodic physical counts.

Inventory Volumes

The total amount of goods a company has available for sale or production at any given time, often measured in units or cost value.