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 law establishes rules related to the creation of financial statements to help prevent fraud in publicly traded companies?

Dodd-Frank Act

Gramm-Leach-Bliley Act

Sarbanes-Oxley Act

Securities Act of 1933

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Verified step by step guidance

Understand the context of the question: It is asking about a law that establishes rules for creating financial statements to prevent fraud in publicly traded companies.

Review the key laws mentioned in the options: The Dodd-Frank Act focuses on financial regulatory reform, the Gramm-Leach-Bliley Act addresses financial privacy, the Sarbanes-Oxley Act is designed to improve corporate governance and financial reporting, and the Securities Act of 1933 regulates securities offerings.

Identify the law most relevant to financial statement creation and fraud prevention: The Sarbanes-Oxley Act (SOX) was enacted in 2002 and specifically addresses corporate governance, internal controls, and the accuracy of financial statements to prevent fraud.

Understand the provisions of the Sarbanes-Oxley Act: It includes requirements for CEOs and CFOs to certify the accuracy of financial statements, mandates internal controls, and establishes penalties for fraudulent financial reporting.

Conclude that the Sarbanes-Oxley Act is the correct answer based on its focus on improving the reliability of financial statements and preventing fraud in publicly traded companies.