Which of the Following Statements Is True About the Sarbanes-Oxley

question 72

Multiple Choice

Which of the following statements is true about the Sarbanes-Oxley Act of 2002?

• A)It prohibits any one institution from acting as any combination of an investment bank,a commercial bank,and an insurance company.
• B)It allows for the full or partial disclosure of previously unreleased information and documents controlled by any public enterprise.
• C)Areas covered under this act require financial institutions to keep records of cash purchases of negotiable instruments and to report suspicious activity that might signify money laundering,tax evasion,or other criminal activities.
• D)Areas covered under this act include maintaining generally accepted accounting practices and ensuring company structure and processes that enhance integrity and reputation.
• E)Commercial banks and savings associations are encouraged to help meet the needs of borrowers in all segments of their communities,including low and moderate-income neighborhoods.

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Definitions:

Deficiency

The debit balance in the owner’s equity account of a partner.

Absorbed

Pertains to costs that have been taken into account or integrated into the pricing of products or services, often in relation to overheads or other indirect expenses.

Share of Losses

An accounting term referring to the proportion of losses allocated to an entity in a partnership or joint venture.

Realization

The process of converting non-cash assets into cash or recognizing revenue when it is earned regardless of when cash is received.