What Is Required by the Sarbanes-Oxley Act of 2002 in Regard

question 3

Multiple Choice

What is required by the Sarbanes-Oxley Act of 2002 in regard to the certification of the accuracy of public companies' SEC filings and the adequacy of internal controls?

• A) The chief executive officer,the chief financial officer,and all inside directors must certify the accuracy of public companies' SEC filings and the adequacy of internal controls.
• B) The chief executive officer,the chief financial officer,and any controlling shareholder must certify the accuracy of public companies' SEC filings and the adequacy of internal controls.
• C) The chief executive officer and the chief financial officer must certify the accuracy of public companies' SEC filings and the adequacy of internal controls.
• D) The chief executive officer,the chief financial officer,and all outside directors must certify the accuracy of public companies' SEC filings and the adequacy of internal controls.

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Definitions:

Payback Period

Payback period is the duration required to recover the cost of an investment, calculated by dividing the initial investment by the annual cash inflow.

Net Present Value

A financial metric used to evaluate the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows over a period of time.

Salvage Value

The determined residual amount of an asset at the cessation of its utility.

Net Cash Inflows

The total amount of cash received minus cash paid out over a specific period, not including non-cash expenses.