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

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Multiple Choice

Which one of the following best describes the primary intent of the Sarbanes-Oxley Act of 2002?

To improve the accuracy and reliability of corporate financial reporting and protect investors from fraudulent accounting activities.

To reduce corporate income tax rates for publicly traded companies.

To establish international accounting standards for all U.S. companies.

To eliminate the need for external audits of public companies.

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Verified step by step guidance

Understand the context of the Sarbanes-Oxley Act of 2002: This legislation was enacted in response to major corporate scandals (e.g., Enron, WorldCom) to restore investor confidence and ensure the integrity of financial reporting.

Identify the primary intent of the Act: The Sarbanes-Oxley Act focuses on improving the accuracy and reliability of corporate financial reporting and protecting investors from fraudulent accounting practices.

Eliminate incorrect options: Review the provided choices and rule out options that do not align with the Act's purpose. For example, reducing corporate income tax rates, establishing international accounting standards, or eliminating external audits are not objectives of the Act.

Focus on the correct option: The Act emphasizes stricter regulations, internal controls, and accountability for corporate executives to ensure transparency in financial reporting.

Conclude with the correct understanding: The primary intent of the Sarbanes-Oxley Act is to improve the accuracy and reliability of corporate financial reporting and protect investors from fraudulent accounting activities.