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 of the following companies was involved in corporate scandals that contributed to the enactment of the Sarbanes-Oxley Act of 2002?

Apple

Microsoft

Google

Enron

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Understand the context of the Sarbanes-Oxley Act of 2002: This legislation was enacted in response to major corporate scandals that revealed significant issues in financial reporting and corporate governance.

Identify the companies involved in these scandals: Enron, WorldCom, and Tyco International were among the most notable companies whose fraudulent activities led to the creation of the Sarbanes-Oxley Act.

Recognize the role of Enron: Enron's scandal involved massive accounting fraud, including the use of special purpose entities (SPEs) to hide debt and inflate profits, which ultimately led to its bankruptcy.

Differentiate the companies listed in the question: Apple, Microsoft, and Google were not involved in the corporate scandals that led to the Sarbanes-Oxley Act. Enron is the correct answer as it played a central role in these events.

Conclude with the importance of the Sarbanes-Oxley Act: This act introduced stricter regulations for financial reporting, internal controls, and corporate accountability to prevent similar scandals in the future.