What Does the Sarbanes-Oxley Act of 2002 Require a Chief

question 100

Multiple Choice

What does the Sarbanes-Oxley Act of 2002 require a chief financial officer to do?

• A) prevent insider trading
• B) engage in strategic management
• C) guarantee the accuracy of financial reporting
• D) hire a forensic accountant
• E) oversee the implementation of ethical standards

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Definitions:

Inventory Account

An accounting record that tracks the cost of goods available for sale or used in production.

Perpetual Inventory System

An accounting method that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Gross Profit

The difference between the revenue generated from selling goods or services and the cost of those goods sold, excluding other operating expenses.

Cost Of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials and labor, used in calculating gross profit.