The Sarbanes-Oxley Act (SOX) Was Enacted in 2002 Required MNCs

question 70

True/False

The Sarbanes-Oxley Act (SOX) was enacted in 2002 required MNCs and other firms to implement an internal reporting process that could be easily monitored by executives and the board of directors.

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Definitions:

Ordinary Interest

interest calculated on a loan or investment based on a 360-day year, commonly used in banking and finance.

Exact Interest

Interest calculation method utilizing the actual number of days in the interest period and a 365-day year to determine the accurate interest due.

Simple Interest

Interest calculated solely on the principal amount of a loan or investment, without compounding over time.

360-Day Year

This is a simplified method used in some financial calculations where the year is assumed to have 360 days for ease of interest computation.