Which Law Requires Companies to Implement Extensive and Detailed Policies

question 44

Multiple Choice

Which law requires companies to implement extensive and detailed policies to prevent illegal activity within the company and respond in a timely manner to investigate illegal activity?

• A)The National Origins Act
• B)The Glass-Steagall Act
• C)The Sarbanes-Oxley Act
• D)The Johnson-Reed Act

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Definitions:

Lower of Cost or Market

An accounting principle requiring inventory to be recorded at the lower of its original cost or its current market value.

Inventory Valuation

The method used to assign cost to inventory for the purposes of accounting, vital for determining cost of goods sold and ending inventory values.

Net Realizable Value

The estimated selling price of goods minus the costs of their sale or disposal, used in assessing the value of inventory and receivables.

Replacement Cost

The cost to replace an asset or item at current market prices, without deduction for depreciation.