Which of the Following Statements Is True About the Sarbanes-Oxley

question 72

Multiple Choice

Which of the following statements is true about the Sarbanes-Oxley Act of 2002?

• A)It prohibits any one institution from acting as any combination of an investment bank,a commercial bank,and an insurance company.
• B)It allows for the full or partial disclosure of previously unreleased information and documents controlled by any public enterprise.
• C)Areas covered under this act require financial institutions to keep records of cash purchases of negotiable instruments and to report suspicious activity that might signify money laundering,tax evasion,or other criminal activities.
• D)Areas covered under this act include maintaining generally accepted accounting practices and ensuring company structure and processes that enhance integrity and reputation.
• E)Commercial banks and savings associations are encouraged to help meet the needs of borrowers in all segments of their communities,including low and moderate-income neighborhoods.

Recognize the use of financial mechanisms to manage and optimize cash flow, like ZBAs and lockbox systems.

Understand the various inventory management concepts including economic order quantity, safety stock, JIT systems, and their impact on a firm’s cash flow and operational efficiency.

Understand the difference between various financial instruments including promissory notes, lines of credit, and revolving credit agreements.

Comprehend the economic reasons for holding cash.

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Definitions:

Cravings

Intense, urgent, or abnormal desires or longings, especially for food or substances.

Emotional Experiences

The internal personal feelings and reactions to events or thoughts, which can vary greatly in intensity and type.

Hallucinogen

A class of drugs that causes users to experience alterations in perception, mood, and thought, often inducing visions or perceptions of things that are not actually present.

Depressant

A substance that reduces arousal or stimulation, effectively slowing down body functions.