General Education Development (GED) Practice Exam

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Prepare for the GED Exam. Test your skills with a dynamic quiz featuring diverse questions and detailed explanations. Sharpen your preparation and excel in your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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The Sarbanes-Oxley Act of 2002:

Vastly reduced the financial reporting obligations that corporations face
Deregulated public utilities
Was intended to fight corporate and accounting fraud
Reduced tariffs on trade among North American countries

The correct answer is: Was intended to fight corporate and accounting fraud

The Sarbanes-Oxley Act of 2002 was a direct response to major corporate and accounting scandals, such as those involving Enron and WorldCom, which shook public trust in financial markets. Its primary intention was to enhance corporate governance and accountability by implementing stricter rules on financial reporting and greater oversight of accounting practices. This includes requirements for increased transparency, as well as the establishment of the Public Company Accounting Oversight Board (PCAOB) to oversee audits of public companies. The focus on fighting corporate and accounting fraud is evident in provisions that hold executives accountable for the accuracy of financial statements, thereby encouraging ethical management practices and protecting investors. This act marked a significant shift in how publicly traded companies must operate, promoting integrity and financial health in the corporate sector. The other options mentioned do not align with the primary objectives of the Sarbanes-Oxley Act, which centers around corporate accountability and fraud prevention.