Question: Dodd-Frank few proposals

Answer: Exemption from section 404(b) of SOX, Independence, Whistleblower.

Question: Exemption from Section 404(b) of SOX

Answer: for smaller public entities from the requirement to obtain an external audit on effectiveness of internal control over financial reporting.

Question: Independence

Answer: for all members of the compensation committee (including additional disclosures); in the event of an accounting restatement, an entity must set policies mandating recovery (“clawback”) of excess incentive compensation.

Question: Whistleblower

Answer: requires the SEC, when sanctions exceed $1 million, to pay whistleblowers between 10% and 30% of the sanction.

Question: Accounting Equation

Answer: The accounting system reflects two basic aspects of a company” what it owns and what it owes.

Question: Assets

Answer: are resources a company owns or controls. These resources are expected to yield future benefits, like web servers for an online services company, musical instrument for a rock band, and land for a vegetable grower.(Ej. cash, supplies, equipment, and land, where each carries expected benefits. The claims on a company’s assets -what it owes- are separated into owner and nonowner claims).

Question: Receivable

Answer: is used to refer to an asset that promises a future inflow of resources. A company that provides a service or product on credit is said to have an account receivable from that customer.

Question: Liabilities

Answer: are creditors’ claims on assets. These claims reflect company obligations to provide assets, products, or services to others. Liabilities are also what a company owes its nonowners (creditors) in future payments, products, or services.

Question: Payable

Answer: refers to a liability that promises a future outflow of resources. Ej are wages payable to workers, accounts payable to suppliers, notes payable to banks, and taxes payable to the government.

Question: Equity (net assets or residual equity) (Stockholders ‘equity or Capital)

Answer: