Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

6. Internal Controls and Reporting Cash

Sarbanes-Oxley Act

Financial Accounting

6. Internal Controls and Reporting Cash

Sarbanes-Oxley Act

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following is a provision included in the Sarbanes-Oxley Act?

Mandate for companies to use cash-basis accounting

Requirement for management to certify the accuracy of financial statements

Elimination of the need for external audits

Abolishment of the Securities and Exchange Commission (SEC)

Previous problemNext problem

Verified step by step guidance

Understand the Sarbanes-Oxley Act (SOX): The Sarbanes-Oxley Act was enacted in 2002 to improve corporate governance and accountability in response to major financial scandals. It includes provisions to enhance transparency and prevent fraudulent financial reporting.

Review the key provisions of SOX: One of the critical provisions is the requirement for management to certify the accuracy of financial statements. This ensures that executives take responsibility for the integrity of the company's financial reporting.

Eliminate incorrect options: The Sarbanes-Oxley Act does not mandate cash-basis accounting, eliminate external audits, or abolish the SEC. These options are inconsistent with the purpose of SOX, which is to strengthen financial oversight and accountability.

Focus on the correct provision: The requirement for management to certify the accuracy of financial statements aligns with SOX's goal of improving corporate accountability and preventing fraudulent practices.

Conclude the analysis: Based on the review of the provisions, the correct answer is the requirement for management to certify the accuracy of financial statements, as it directly supports the objectives of the Sarbanes-Oxley Act.