The Sarbanes-Oxley Act of 2002 Was Passed in Response to

question 95

Multiple Choice

The Sarbanes-Oxley Act of 2002 was passed in response to

• A) insider trading activities.
• B) false disclosures in financial reporting.
• C) the decline in technology stocks.
• D) all of the above.

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Definitions:

Cash Receipts

The collection of money (cash, checks, wire transfers) by a business from its customers.

Cash Payments

Payments of cash to fulfill debts or acquire goods and services.

T Accounts

A visual representation of a ledger account that separates debits and credits, making the accounting process simpler.

Debit

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