The Sarbanes-Oxley Act of 2002 Required a New Independent Board

question 20

True/False

The Sarbanes-Oxley Act of 2002 required a new independent board called the Public Company Accounting Oversight Board to be formed to oversee the auditing profession and the audits of public companies.

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Definitions:

Accounts Payable

Money owed by a business to its suppliers or creditors for goods and services received but not yet paid for.

Credit

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

Debit

An entry recorded on the left side of a double-entry accounting system that increases assets or expenses and decreases liabilities, equity, and revenue.

Inventory Purchases

This term refers to the buying of goods and materials that a business intends to sell in the future as part of its operations.