The Sarbanes-Oxley Act of 2002 Made It a Felony to

question 51

Multiple Choice

The Sarbanes-Oxley Act of 2002 made it a felony to

• A)destroy or create documents to impede a federal investigation.
• B)have internal control weaknesses.
• C)have a significant internal control weakness.
• D)engage in transactions with related parties.

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Definitions:

Owner's Drawings Account

An account used to record withdrawals of assets from a business by the owner for personal use.

Income Summary Account

A temporary account used in accounting to transfer revenues and expenses at the end of an accounting period; its balance is ultimately transferred to retained earnings.

Owner's Capital Account

A line item in a firm's balance sheet that shows the value of the proprietor's invested capital and the accumulated profits retained within the company.

Credited

An accounting entry that increases a liability or equity account, or decreases an asset or expense account.