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Mademuasel [1]
3 years ago
12

The Sarbanes-Oxley Act: A. substantially increases the penalties for corporate wrongdoing. B. gives corporations greater freedom

from government control. C. adopts the theory of allocational efficiency. D. motivates executives to inflate reports of corporate profits.
Business
2 answers:
Sonja [21]3 years ago
7 0

Answer:

A. substantially increases the penalties for corporate wrongdoing.

Explanation:

The Sarbanes-Oxley Act of 2002 is a federal law that instituted thorough auditing and financial regulations for public companies. This legislation was created by Lawmakers to protect investors, employees as well as the public from fraudulent financial practices and accounting mishaps. It was passed as a result of the accounting scandals of major corporations including Enron and WorldCom, which resulted in losses running into billions of dollars by investors. These massive losses negatively affected the financial markets and put investors on high alert

The law reduces the freedom of corporations by the government, hence, <u>option B is wrong</u>

The law was passed to curb fraudulent practises not to adopt the theory of allocational efficiency, hence, <u>option C is wrong</u>

The law <u>discourages</u> executives to inflate reports of corporate profits, hence, <u>option D is wrong</u>

The law substantially increases the penalties for corporate wrongdoing,  hence, <u>option A is right</u>

Mamont248 [21]3 years ago
5 0

Answer: The Sarbanes-Oxley Act increases the penalties for corporate wrongdoing. (A)

Explanation:

The Sarbanes-Oxley Act was passed to reduce corporate fraud. The Act led to the creation of the Public Company Accounting Oversight Board which was in charge of overseeing the accounting industry. Protection was given to whistleblowers and giving company loans to executives was banned. Chief executive officers were also held responsible for errors made in accounting audits.

The Sarbanes-Oxley Act was as a result of financial scandals involving publicly traded firms such as WorldCom, Tyco International Plc and Enron Corporation in 2000. The frauds in the companies affected the confidence of investors which eventually led to the Act.

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The San Pedro Company forecasts that total overhead for the current year will be $10,000,000 and that total machine hours will b
Temka [501]

Answer:

the  overhead rate is $50 per machine hour

Explanation:

The computation of the overhead rate is shown below:

Predetermined overhead rate

= Estimated total Overhead ÷ Estimated total machine hour

= $10,000,000 ÷ 200,000 hours

= $50 per machine hour

hence, the  overhead rate is $50 per machine hour

The same should be considered and relevant

4 0
3 years ago
A communication style is ____________________
kiruha [24]

Answer:

Communication styles are the broad ways in which people tend to communicate with others.

Explanation:

7 0
3 years ago
Read 2 more answers
Joe and Michelle have a partnership firm. Based on the income-based method of calculating GDP, what category is the income earne
tekilochka [14]

Answer: B) employee’s compensation.

The income approach to measure gross domestic product or GDP starts with the income earned (wages plus plus rents plus interest plus profits) from the production of goods and services.

Based on the income-based method of calculating GDP, income or wages earned by Joe and Michelle for being partners can be categorized under B) employee’s compensation.


3 0
3 years ago
Exercise 14-04 a-c Bonita Company reports the following costs and expenses in May. Factory utilities $16,000 Direct labor $72,70
PilotLPTM [1.2K]

Answer:

Factory Overheads  $182,420

Manufacturing overhead $ 396,820

Product costs $396,820

Period costs $ 75,720

Explanation:

Bonita Company

Direct materials used 141,700

Direct labor $72,700

Factory Overheads  $182,420

Factory utilities $16,000

Depreciation on factory equipment 14,250

Property taxes on factory building 2,600

Indirect factory labor 53,500

Indirect materials 85,000

Factory repairs 2,970

Factory manager’s salary 8,100

Manufacturing overhead $ 396,820

Product costs $396,820

Advertising 15,600

Office supplies used 3,420

Sales salaries 50,000

Depreciation on delivery trucks 4,900

Repairs to office equipment 1,800

Period costs $ 75,720

Manufacturing Costs are costs used in the manufacture of products.

Product Costs = Direct materials + Direct Labor + Manufacturing Overheads

Period Costs include Marketing and Selling Expenses , Administrative Expenses.

5 0
3 years ago
Prepare the December 31 adjusting entries for the following transactions with JE explanations. 1. Fees accrued but not billed, $
disa [49]

Answer:

Adjusting Entries

    Date                 Description                         Debit       Credit

1.  December 31    Fees Revenue                  $6,300

                             Account Receivable                        $6300

2. December 31    Supplies Expense            $3,790

                             Supplies Inventory                          $3,790

3. December 31    Wages Expense               $2,700

                             Wages Payable                               $2,700

4. December 31    Depreciation Expense     $1,650

                             Accumulated Depreciation             $1,650

   December 31    Rent Expense                   $10,800

                             Prepaid Rent                                    $10,800

Explanation:

Supplies Expense = $4,750 - $960 = $3,790

Rent expired term is considered as there is a prepaid rent balance of $10,800

3 0
3 years ago
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