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Rama09 [41]
3 years ago
14

Refer to Stevenson, Ross, and Warner. Which of the following represents a key component of the Sarbanes-Oxley Act relating to co

nsulting services?
Business
1 answer:
antoniya [11.8K]3 years ago
4 0

Answer:

The correct answer is B. Accounting firms are prohibited from providing many types of consulting services to the companies they audit.

Explanation:

The main reason for this policy is that it does not allow conflicts of interest to arise that eventually produce widely known cases of fraud, such as those presented at the Enron and Worldcom companies.

The Enron case broke out in the U.S. when that energy giant announced what was once the biggest bankruptcy in the history of the country, with a debt of 31,000 million dollars, something overcome a few months later by the collapse of another colossus, WorldCom.

In June 2002 WorldCom, the second US telephone. and of the world, he admitted that he had lied in his accounting books for almost 4,000 million dollars and his actions - which shortly before touched his maximum of 16 dollars - collapsed to 20 cents. His bankruptcy exceeded Enron's: $ 35 billion of liabilities.

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Suppose we are looking at a cash flow statement constructed using the INDIRECT method. We see a NEGATIVE adjustment of $5000 rel
ozzi

Answer:

It implies that the firm paid $5,000 to its supplier this accounting period (e.g. year) out of the amount the firm is owing the supplier.

Note: The correct answer is as stated above it is not included in the option. Kindly confirm the options again from your teacher.

Explanation:

Accounts payable refers to the amount of money a firm is owing its suppliers.

Account payable is one of the component of the current liabilities in the balance sheet, and non-cash current liability item that is adjusted for in the cash flow statement to arrive at net cash from operating activities when an indirect method is being used.

Since accounts payable is the amount of money a firm is owing its suppliers, a negative  a NEGATIVE adjustment to its implies that company has paid its supplier the negative amount in the accounting period.

Therefore, a NEGATIVE adjustment of $5000 related to Accounts Payable implies that the firm paid $5,000 to its supplier this accounting period (e.g. year) out of the amount the firm is owing the supplier.

7 0
3 years ago
Donavan spent the day talking with a packaging company in Guam, a lighting specialist in Japan, a touchpad expert in the U.S., a
leva [86]

Answer:

C, distributed product development

Explanation:

Distributed product development can simply be defined as the distribution of the different parts/components of a product to different firms. Distributed product development is usually done when the best of partners are being consulted over a product. Te other firms usually are the best in the production of the components of the product and as such might not be based in the home country of the product's parent company.

From the above question, it is seen that Donavan is speaking to different companies all of the world as regards his product's components. The companies are the best in what they do and he has to have each of them contribute their best ideas to his product.

Cheers.

8 0
3 years ago
AN The Mixing Department manager of Malone Company is able to control
slamgirl [31]

Responsibility report for the financial period of the overhead costs incurred will have a negative shortfall and a difference of $4125 for the controllable costs.

<h3>What are overhead costs?</h3>

Overhead costs are such costs which are continuously in an organization while operating in the regular course of business. The overhead costs are estimated before they are actually incurred for efficiency of cost allocation.

The responsibility report for the overhead costs incurred by Malone Company for the given period are attached with an image for better reference.

Hence, it can be stated that the controllable costs' responsibility report shows as overhead costs of negative difference of $4125.

Learn more about overhead costs here:

brainly.com/question/14811739

#SPJ1

4 0
2 years ago
Cities are municipal corporations that operate under _______ from the state.
Soloha48 [4]
Cities are municipal corporations that operate under C. Charters from the state.
3 0
3 years ago
Read 2 more answers
One example of the role of democracy in education is
erma4kov [3.2K]
I’m pretty sure the answer is C. To cultivate responsibility in our students
5 0
2 years ago
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