In the US, the First Legislation Requiring Management of Public Companies to Companies

question 8

Multiple Choice

In the U.S., the first legislation requiring management of public companies to maintain a system of internal controls was the:

• A) Committee of Sponsoring Organizations (COSO) of the Treadway Commission Act.
• B) Sarbanes-Oxley Act.
• C) Foreign Corrupt Practices Act.
• D) Public Company Accounting Oversight Board (PCAOB) Act.

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Definitions:

Debt Ratio

A financial ratio that compares a company's total debt to its total assets, indicating the degree of leverage and financial risk.

Total Assets

The aggregate of all resources owned by a company, valued in monetary terms, including both current and non-current assets.

Equipment

Tangible property used in the operations of a business, not intended for sale, with a useful life extending beyond a year.

Asset Account

An account that records the value of economic resources owned by an entity, which are expected to provide future benefits.