Under SOX Title XI, What Is the SEC Empowered to Do

question 37

Multiple Choice

Under SOX Title XI, what is the SEC empowered to do?

• A) Use the assets of the corporation it is investigating to pay for the on-going investigation.
• B) Lobby congress for specific laws to enable them to make gray areas they are investigating illegal for quicker conviction rates.
• C) Petition federal courts for temporary injunctions to freeze pending "extraordinary payments" to certain individuals under investigation for possible violations of Federal securities law.
• D) All of the above.

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Definitions:

Principal

The original sum of money borrowed in a loan, or the amount of the loan that has not yet been repaid, excluding interest.

Straight-Line Method

A depreciation technique that allocates an equal portion of an asset's cost to each period of its useful life.

Interest Expense

The cost incurred by an entity for borrowed funds, represented as a charge against earnings in the income statement.

Interest Payable

The amount of interest that has been incurred on borrowed funds that a company must pay, typically represented as a current liability on the balance sheet.