What Key Piece of Legislation Was Passed in Response to Corporate

question 62

Multiple Choice

What key piece of legislation was passed in response to corporate accounting scandals by Enron,WorldCom,and others?

• A)Sarbanes-Oxley Act.
• B)1933 Securities Act.
• C)1934 Securities Exchange Act.
• D)Regulation Fair Disclosure.

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Definitions:

LIFO Method

Last In, First Out method; an inventory valuation method where the last items placed in inventory are the first ones to be used or sold.

Rising Prices

An economic condition characterized by an increase in the cost of goods and services over time, affecting purchasing power.

Average Costing

A method of inventory costing that determines the cost of goods sold and ending inventory value by calculating a weighted average of all costs for goods available for sale.

LIFO

Last In, First Out, an inventory valuation method where the most recently produced items are recorded as sold first.