Which of the Following Is Not a True Statement Relating

question 73

Multiple Choice

Which of the following is not a true statement relating to the Treadway Commission?

• A) The Treadway Commission is the popular name for the National Commission on Fraudulent Reporting.
• B) The Treadway Commission has released reports detailing internal control systems.
• C) Management's Report on Internal Control over Financial Reporting and the independent public accounting firm report to the shareholders and board of directors often refer to criteria established on internal control by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
• D) The Treadway Commission has issued a number of recommendations for the prevention of fraud on financial reports, ethics, and effective internal controls.
• E) The Treadway Commission is a voluntary private-sector organization formed to support the Sarbanes-Oxley Act.

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Definitions:

Inventory Period

The duration of time goods remain in inventory before being sold.

Accounts Receivable Period

The accounts receivable period is the average time it takes for a business to receive payments owed by its customers for goods or services sold on credit.

Cash Cycle

This term describes the time it takes for a business to convert its investments in inventory and other resources into cash flows from sales.

Source Of Cash

The origin of funds that a company or individual has, which could be operational earnings, investment returns, or financing.