In Response to Accounting Scandals in 2002, the Federal Government

question 155

Multiple Choice

In response to accounting scandals in 2002, the federal government passed legislation requiring that corporate directors have a certain level of expertise with financial information and mandating that chief executive officers personally certify the accuracy of financial statements. What is the name of this legislation?

• A) the Accountant Reliability Act
• B) the 24th amendment to the Constitution
• C) the Kennedy-Lott Act
• D) the Sarbanes-Oxley Act

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Definitions:

Loan

An amount of money lent out that is to be returned with a specified interest.

T-Bill

Treasury Bill, a short-term government security issued at a discount from the face value and pays no interest before it matures.

Yields

The income return on an investment, such as the interest or dividends received, usually expressed as an annual percentage.

T-Bill

Short for Treasury Bill, a short-term government securities issued with a maturity of less than one year, considered a safe investment.