Which of the Following Is a Requirement Stated by the Sarbanes-Oxley

question 90

Multiple Choice

Which of the following is a requirement stated by the Sarbanes-Oxley Act?

• A)This act requires that the Federal Reserve Board take up the task of certifying public accountants.
• B)This act requires firms to separate their consulting and auditing businesses.
• C)This act limits the types of assets commercial banks can buy.
• D)This act limits the use of derivative instruments.
• E)This act requires that firms employ their own private accountants.

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Definitions:

Operations

The day-to-day activities required for continued business functioning, focusing on creating and delivering products or services.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead cost to products, calculated before the manufacturing process begins based on estimated costs.

Overapplied Overhead

A situation where the allocated overhead costs exceed the actual overhead expenses incurred.

Machine-Hours

A unit of measure indicating the total time production machinery is operated, used in calculating manufacturing costs and efficiencies.