Question 1

Describe the two parts of the SEC registration statement.

Accepted Answer

Part I (the prospectus) contains extensi

Question 2

Why was the Public Utility Holding Company Act of 1935 created?

Accepted Answer

There were financial reporting abuses in

Question 3

Who has the responsibility for the evaluation of the quality of an investment?

Accepted Answer

The answer of Who has the responsibility for the evaluation...

Question 4

The goals of the SEC include all except which one of the following?

Accepted Answer

A)  Prohibiting the dissemination of materially misstated information. 
B)  Controlling the number of companies whose stock is listed on major stock exchanges. 
C)  Regulating the operation of securities markets. 
D)  Ensuring that full and fair information is disclosed to all investors before the securities of a company may be bought and sold. 
E)  Preventing the misuse of information especially by inside parties. 
A)  Prohibiting the dissemination of materially misstated information. 
B)  Controlling the number of companies whose stock is listed on major stock exchanges. 
C)  Regulating the operation of securities markets. 
D)  Ensuring that full and fair information is disclosed to all investors before the securities of a company may be bought and sold. 
E)  Preventing the misuse of information especially by inside parties.

Question 5

Name the two broad categories of filings with the SEC.

Accepted Answer

Registrati

Question 6

Which one of the following requires the registration of mutual funds that engage in investing and trading in securities?

Accepted Answer

A)  The Securities Act of 1933. 
B)  The Securities Exchange Act of 1934. 
C)  The Investment Company Act of 1940. 
D)  The Foreign Corrupt Practices Act of 1977. 
E)  The Sarbanes-Oxley Act of 2002. 
A)  The Securities Act of 1933. 
B)  The Securities Exchange Act of 1934. 
C)  The Investment Company Act of 1940. 
D)  The Foreign Corrupt Practices Act of 1977. 
E)  The Sarbanes-Oxley Act of 2002.

Question 7

What is private placement of securities?

Accepted Answer

A)  A procedure that allows a company to register securities and then sell them over a period of two years without reregistering. 
B)  A procedure that allows the sale of securities to no more than 35 sophisticated knowledgeable investors, with no general solicitation allowed. 
C)  A method of filing Form 10-K with the SEC. 
D)  The registration of mutual funds that engage in investing and trading securities. 
E)  A sale of securities to no more than 50 accredited investors, with no general solicitation allowed. 
A)  A procedure that allows a company to register securities and then sell them over a period of two years without reregistering. 
B)  A procedure that allows the sale of securities to no more than 35 sophisticated knowledgeable investors, with no general solicitation allowed. 
C)  A method of filing Form 10-K with the SEC. 
D)  The registration of mutual funds that engage in investing and trading securities. 
E)  A sale of securities to no more than 50 accredited investors, with no general solicitation allowed.

Question 8

What information needs to be included in Form 10-Q?

Accepted Answer

Information in Form 10-Q includes the fo

Question 9

Which of the following forms is used in connection with registration of securities by certain real estate companies?

Accepted Answer

A)  S-8. 
B)  S-3. 
C)  S-4. 
D)  S-1. 
E)  S-11. 
A)  S-8. 
B)  S-3. 
C)  S-4. 
D)  S-1. 
E)  S-11.

Question 10

Which information is not contained in the prospectus of the registration statement?

Accepted Answer

A)  A listing of directors and executive officers. 
B)  An explanation of the intended use of the proceeds. 
C)  A description of the risks associated with the securities. 
D)  A description of the business of the registrant. 
E)  A description of the properties of the registrant. 
A)  A listing of directors and executive officers. 
B)  An explanation of the intended use of the proceeds. 
C)  A description of the risks associated with the securities. 
D)  A description of the business of the registrant. 
E)  A description of the properties of the registrant.

Question 11

Which of the following securities offerings is not exempt from registration prior to their sale?

Accepted Answer

A)  Securities issued to a company's board of directors. 
B)  Securities issued by governments. 
C)  Securities issued by banks. 
D)  Securities issued by savings and loan associations. 
E)  Offerings of no more than $1 million made to any number of investors within a 12-month period. 
A)  Securities issued to a company's board of directors. 
B)  Securities issued by governments. 
C)  Securities issued by banks. 
D)  Securities issued by savings and loan associations. 
E)  Offerings of no more than $1 million made to any number of investors within a 12-month period.

Question 12

Which one of the following Federal laws was enacted in 1935?

Accepted Answer

A)  The Securities Act. 
B)  The Securities Exchange Act. 
C)  The Trust Indenture Act. 
D)  The Investment Company Act. 
E)  The Public Utility Holding Company Act. 
A)  The Securities Act. 
B)  The Securities Exchange Act. 
C)  The Trust Indenture Act. 
D)  The Investment Company Act. 
E)  The Public Utility Holding Company Act.

Question 13

Which of the following are issued by the SEC, as needed, to supplement Regulation S-X and Regulation S-K?

Accepted Answer

A)  SABs. 
B)  ASRs. 
C)  FRRs. 
D)  ARBs. 
E)  SRBs. 
A)  SABs. 
B)  ASRs. 
C)  FRRs. 
D)  ARBs. 
E)  SRBs.

Question 14

The SEC's role in the initial registration of securities to be publicly issued is:

Accepted Answer

A)  To ensure that the content of the registration filing is in compliance with securities regulations. 
B)  To ensure that securities issued are quality investments. 
C)  To provide data to the public regarding first-time issuance of securities. 
D)  To give permission to an independent CPA firm to audit the registrant's financial statements. 
E)  To make the registrant's annual report available for public viewing. 
A)  To ensure that the content of the registration filing is in compliance with securities regulations. 
B)  To ensure that securities issued are quality investments. 
C)  To provide data to the public regarding first-time issuance of securities. 
D)  To give permission to an independent CPA firm to audit the registrant's financial statements. 
E)  To make the registrant's annual report available for public viewing.

Question 15

Which of the following forms is used in connection with registration of securities of a small reporting company with $25 million of annual revenues and of $25 million of voting securities held by non-affiliates?

Accepted Answer

A)  S-8. 
B)  S-3. 
C)  S-4. 
D)  S-1 
E)  S-11. 
A)  S-8. 
B)  S-3. 
C)  S-4. 
D)  S-1 
E)  S-11.

Question 16

Filings with the SEC are divided generally into two broad categories:

Accepted Answer

A)  Registration statements and perpetual filings. 
B)  Reconciliation statements and periodic filings. 
C)  Registration statements and periodic filings. 
D)  Registration filings and reconciliation statements. 
E)  Reconciliation filings and perpetual filings. 
A)  Registration statements and perpetual filings. 
B)  Reconciliation statements and periodic filings. 
C)  Registration statements and periodic filings. 
D)  Registration filings and reconciliation statements. 
E)  Reconciliation filings and perpetual filings.

Question 17

Regulation S-K:

Accepted Answer

A)  Controls the listing of securities by stock exchanges. 
B)  Establishes requirements for nonfinancial information to be filed with the SEC. 
C)  Prescribes the form of financial statements to be filed with the SEC. 
D)  Describes the internal controls a publicly traded company must maintain. 
E)  Prescribes the financial disclosure information that must be included in filings with the SEC. 
A)  Controls the listing of securities by stock exchanges. 
B)  Establishes requirements for nonfinancial information to be filed with the SEC. 
C)  Prescribes the form of financial statements to be filed with the SEC. 
D)  Describes the internal controls a publicly traded company must maintain. 
E)  Prescribes the financial disclosure information that must be included in filings with the SEC.

Question 18

Which one of the following is not a division of the SEC?

Accepted Answer

A)  The Division of Corporation Finance. 
B)  The Division of Investment Management. 
C)  The Division of Compliance Information. 
D)  The Division of Enforcement. 
E)  The Division of Trading and Markets. 
A)  The Division of Corporation Finance. 
B)  The Division of Investment Management. 
C)  The Division of Compliance Information. 
D)  The Division of Enforcement. 
E)  The Division of Trading and Markets.

Question 19

What information is required in proxy statements?

Accepted Answer

Proxy statements must include the follow

Question 20

The audit committee of an entity subject to SEC regulation will do all of the following except:

Accepted Answer

A)  Be responsible for agreeing to fee compensation of the independent audit firm. 
B)  Certify the annual financial statements. 
C)  Be comprised only of individuals who are not members of management. 
D)  Approve non-audit services provided by the independent audit firm. 
E)  Serve as liaison between the board of directors and the independent audit firm. 
A)  Be responsible for agreeing to fee compensation of the independent audit firm. 
B)  Certify the annual financial statements. 
C)  Be comprised only of individuals who are not members of management. 
D)  Approve non-audit services provided by the independent audit firm. 
E)  Serve as liaison between the board of directors and the independent audit firm.

Exam 12: Financial Reporting and the Securities and Exchange Commission

Describe the two parts of the SEC registration statement.

Why was the Public Utility Holding Company Act of 1935 created?

Who has the responsibility for the evaluation of the quality of an investment?

The goals of the SEC include all except which one of the following?

Name the two broad categories of filings with the SEC.

Which one of the following requires the registration of mutual funds that engage in investing and trading in securities?

What is private placement of securities?

What information needs to be included in Form 10-Q?

Which of the following forms is used in connection with registration of securities by certain real estate companies?

Which information is not contained in the prospectus of the registration statement?

Which of the following securities offerings is not exempt from registration prior to their sale?

Which one of the following Federal laws was enacted in 1935?

Which of the following are issued by the SEC, as needed, to supplement Regulation S-X and Regulation S-K?

The SEC's role in the initial registration of securities to be publicly issued is:

Which of the following forms is used in connection with registration of securities of a small reporting company with $25 million of annual revenues and of $25 million of voting securities held by non-affiliates?

Filings with the SEC are divided generally into two broad categories:

Regulation S-K:

Which one of the following is not a division of the SEC?

What information is required in proxy statements?

The audit committee of an entity subject to SEC regulation will do all of the following except:

The Equity Method of Accounting for Investments

A: the Equity Method of Accounting for Investments

Consolidation of Financial Information

A: Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

A: Consolidations - Subsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

A: Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements Intra-Entity Asset Transactions

A: Consolidated Financial Statements Intra-Entity Asset Transactions

Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

A: Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

Consolidated Financial Statements - Ownership Patterns and Income Taxes

A: Consolidated Financial Statements - Ownership Patterns and Income Taxes

Segment and Interim Reporting

A: Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

A: Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

A: Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Accounting Standards

A: Worldwide Accounting Diversity and International Accounting Standards

A: Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

A: Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operation

A: Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

A: Partnerships: Termination and Liquidation

Accounting for State and Local Governments, Part I

A: Accounting for State and Local Governments, Part I

Accounting for State and Local Governments, Part II

A: Accounting for State and Local Governments, Part II

Accounting for Not-For-Profit Entities

A: Accounting for Not-For-Profit Entities

Accounting for Estates and Trusts

A: Accounting for Estates and Trusts

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