Under the Sarbanes-Oxley Act, Which of the Following Is Not

question 21

Multiple Choice

Under the Sarbanes-Oxley Act, which of the following is not true?

• A) It is a felony to willfully fail to maintain proper records of audits.
• B) Audit and paperwork associated with the audit must be kept for at least 5 years.
• C) Punishment can be up to 10 years imprisonment if audit paperwork is not kept for 5 years.
• D) The punishment for securities fraud has been increased to 25 years.
• E) If found in violation of securities fraud a person can be imprisoned for life.

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Definitions:

Current Assets

Assets that are expected to be converted into cash or used up within one year or one business cycle, whichever is longer, such as cash, inventory, and receivables.

Cash Flow To Creditors

The amount of cash a company pays to its creditors and bondholders, indicating the flow of cash intended to cover debts.

Operating Cash Flow

Operating cash flow is a measure of the cash generated by a company's normal business operations, indicating its ability to cover operating expenses and invest in its business.

Net New Borrowing

The difference between the total amount of debt a company takes on and the amount it repays within a specific period, indicating the net increase in debt.