Which of the Following Acts Directs That the Audit Committee

question 19

Multiple Choice

Which of the following acts directs that the audit committee members should be independent members of the board of directors, not executive directors or otherwise affiliated with the issuer?

• A)Sarbanes Oxley Act of 2002
• B)Securities Act of 1933
• C)Securities Exchange Act of 1934
• D)Foreign Corrupt Practices Act of 1977

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Definitions:

Aging Schedule

A table or report that displays the balances owed to a company by its customers, broken down into categories based on the length of time the invoices have been outstanding.

Average Collection Period

The average collection period is the amount of time it takes for a business to receive payments owed by its clients in relation to its accounts receivable.

Accounts Receivable Balance

Accounts receivable balance is the total amount of money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Payment Collections

The process of gathering payments or receivables from clients or customers.