Internal Controls Are So Critical to a Company That Congress

question 37

Multiple Choice

Internal controls are so critical to a company that Congress passed the:

• A)Sarbanes-Oxley Act of 2002.
• B)Kemp-Oxley Act of 2002.
• C)Economic Stimulus Law of 2008.
• D)Public Company Accounting Oversight Board Act of 2002.

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Definitions:

Liability Account

An accounting record that captures the amounts a company owes to others.

Gross Sales

represent the total sales revenue before any deductions are made for returns, allowances, or discounts.

Cash Sales

Transactions in which goods or services are exchanged immediately for cash payment.

Credit Sales

Sales made on credit, allowing buyers to pay at a later date, usually generating accounts receivable for the seller.