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.

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Definitions:

Capital Lease

A leasing arrangement in which the lessee assumes some risks and benefits of ownership of the asset being leased.

Financial Statement Effects

The impact of business transactions and events on the financial statements, affecting the balance sheet, income statement, and statement of cash flows.

Debt Covenants

These are conditions imposed by lenders (creditors) that borrowers (debtors) must agree to and adhere to as part of the terms of a loan agreement.

Computer System

A combination of hardware, software, and peripherals working together to execute specific tasks or processes.