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:

Operating Cycle

The amount of time it takes for a company to purchase inventory, sell it, and convert the sales back into cash.

Interest Expense

The cost incurred by an entity for borrowed funds, representing interest payments made or accrued on outstanding debts.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, resulting in net income or loss.

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of a business.