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.

Understand the impact of shareholder transactions and policies on a company’s finances.

Understand the components and structure of the accounting equation.

Comprehend the purpose and components of a statement of financial position.

Calculate the changes in total assets given changes in liabilities and shareholders' equity.

---

Definitions:

Cold Cranking Amp

A measure of a battery's ability to start an engine in cold temperatures, specifically the number of amps a battery can support for 30 seconds at 0°F.

Volts

The unit of electric potential difference or electromotive force, measuring the energy per unit charge that drives current flow.

Degrees Fahrenheit

A scale of temperature on which water freezes at 32 degrees and boils at 212 degrees under standard conditions.

Neutralize

To render something inactive by exerting a contrary force or influence, commonly utilized in the realms of chemistry and electricity.