Which of the Following Is NOT True Regarding the Sarbanes-Oxley

question 39

Multiple Choice

Which of the following is NOT true regarding the Sarbanes-Oxley (SOX) Act?

• A) SOX mandates the composition and authority of audit committees at public companies.
• B) SOX prohibits personal loans to executives.
• C) SOX requires corporations to disclose whether they have a code of ethics applicable to senior financial officers and,if not,to disclose why not.
• D) SOX gives the SEC the authority to prohibit unfit persons from serving as officers or directors of a public company for a period of five years.

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Definitions:

General Ledger

A complete record of all the financial transactions over the lifetime of a company, serving as the primary source of accounting data.

Investing Activities

Deals related to buying and selling long-term assets and investments that are not considered as cash equivalents.

Loss

A financial condition where expenses exceed revenues, resulting in a negative net income for a business.

Sale of Equipment

The process of disposing of business equipment, which is recorded as a financial transaction affecting company assets.