Which of the Following Is Not a Requirement of a Company's

question 205

Multiple Choice

Which of the following is not a requirement of a company's top managers under the Sarbanes-Oxley Act?

• A)They must give an opinion about the effectiveness of the company's internal control over financial reporting.
• B)They must certify that they are primarily responsible for the company's internal controls over financial reporting.
• C)They must certify that the company's financial statements are fairly presented.
• D)They may deny responsibility for certain financial reporting matters if they are not knowledgeable about the proper accounting procedures for those transactions.

Determine the effects of inventory management decisions on business liquidity and profitability.

Identify the differences between physical inventory and estimated inventory methods.

Recognize the implications of consignment and ownership issues on inventory counts.

Assess the efficiency and effectiveness of inventory management through specific metrics.

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Definitions:

Herfindahl-Hirschman Index

An indicator used to assess the degree of market concentration and establish the intensity of industry competition.

Oligopolist

A market participant in an oligopoly, a market structure dominated by a small number of large firms, influencing pricing and competition.

Cartel

An association of independent businesses organized to control production, pricing, and marketing of goods to limit competition.

Competitors

Entities or firms in the same industry or market that offer similar goods or services to consumers.