Question 1

What is a primary focus of the Sarbanes-Oxley Act?

Accepted Answer

A)  Accounting standards and the registration of securities. 
B)  Regulation of the continuous reporting by publicly owned companies. 
C)  Accounting standards and registration of investment companies that engage in investing and trading in securities. 
D)  Accounting standards and penalties against persons who profit from illegal use of inside information. 
E)  Regulation of independent audit firms and audit standards. 
A)  Accounting standards and the registration of securities. 
B)  Regulation of the continuous reporting by publicly owned companies. 
C)  Accounting standards and registration of investment companies that engage in investing and trading in securities. 
D)  Accounting standards and penalties against persons who profit from illegal use of inside information. 
E)  Regulation of independent audit firms and audit standards.

Question 2

A proxy statement must be filed with the SEC at least how many days before being distributed?

Accepted Answer

A)  30 days. 
B)  60 days. 
C)  10 days. 
D)  90 days. 
E)  7 days. 
A)  30 days. 
B)  60 days. 
C)  10 days. 
D)  90 days. 
E)  7 days.

Question 3

What was the purpose of the Securities Exchange Act of 1934?

Accepted Answer

The purpose of the Securities Exchange A

Question 4

Which statement is false regarding the Public Company Accounting Oversight Board (PCAOB)?

Accepted Answer

A)  Regulates audit standards and independent audit firms. 
B)  Has five members appointed by the SEC. 
C)  Allows all members to be accountants, past or present. 
D)  Is under the oversight and enforcement of the SEC. 
E)  Is funded by fees levied on all publicly traded companies. 
A)  Regulates audit standards and independent audit firms. 
B)  Has five members appointed by the SEC. 
C)  Allows all members to be accountants, past or present. 
D)  Is under the oversight and enforcement of the SEC. 
E)  Is funded by fees levied on all publicly traded companies.

Question 5

The SEC has usually restricted its role in establishing accounting principles to

Accepted Answer

A)  Specifying the information that should be included in interim financial statements. 
B)  Developing definitions of key accounting terms. 
C)  Developing accounting standards for particular industries. 
D)  Determining required disclosures. 
E)  The promulgation and issuance of SASs (Securities Accounting Standards). 
A)  Specifying the information that should be included in interim financial statements. 
B)  Developing definitions of key accounting terms. 
C)  Developing accounting standards for particular industries. 
D)  Determining required disclosures. 
E)  The promulgation and issuance of SASs (Securities Accounting Standards).

Question 6

What information is required in proxy statements? (1) Five-year summary of operations.
(2) Five-year summary of industry segments.
(3) Listing of company directors and executive officers.
(4) Management discussion and analysis (MD&A).

Accepted Answer

A)  1, 2 and 3. 
B)  2, 3 and 4. 
C)  1, 3 and 4. 
D)  1, 2 and 4. 
E)  1, 2, 3, and 4. 
A)  1, 2 and 3. 
B)  2, 3 and 4. 
C)  1, 3 and 4. 
D)  1, 2 and 4. 
E)  1, 2, 3, and 4.

Question 7

Regulation S-X specifies:

Accepted Answer

A)  Requirements for the nonfinancial information to be filed with the SEC. 
B)  Which form a company must file to register new securities. 
C)  That the financial statements included in a company's annual report must be audited. 
D)  The form and content of financial statements to be filed with the SEC. 
E)  The internal controls a publicly traded company must maintain. 
A)  Requirements for the nonfinancial information to be filed with the SEC. 
B)  Which form a company must file to register new securities. 
C)  That the financial statements included in a company's annual report must be audited. 
D)  The form and content of financial statements to be filed with the SEC. 
E)  The internal controls a publicly traded company must maintain.

Question 8

What is Form 10-K?

Accepted Answer

A)  A quarterly report filed with the SEC. 
B)  An annual report filed with the SEC. 
C)  A semiannual report filed with the SEC. 
D)  A form filed with the SEC before the company issues stock for the first time. 
E)  A form filed with the SEC before issuing stocks to acquire another company. 
A)  A quarterly report filed with the SEC. 
B)  An annual report filed with the SEC. 
C)  A semiannual report filed with the SEC. 
D)  A form filed with the SEC before the company issues stock for the first time. 
E)  A form filed with the SEC before issuing stocks to acquire another company.

Question 9

A wraparound filing:

Accepted Answer

A)  May be used by large companies to sell securities over a period of two years without re-filing with the SEC. 
B)  Is a simplified registration procedure for securities to be issued by small companies. 
C)  Allows a company to simplify its periodic filing by attaching its annual report to Form 10-K. 
D)  Is a filing completed using the SEC's electronic filing system. 
E)  May remain in effect for a period of one to five years. 
A)  May be used by large companies to sell securities over a period of two years without re-filing with the SEC. 
B)  Is a simplified registration procedure for securities to be issued by small companies. 
C)  Allows a company to simplify its periodic filing by attaching its annual report to Form 10-K. 
D)  Is a filing completed using the SEC's electronic filing system. 
E)  May remain in effect for a period of one to five years.

Question 10

What is included in Part I of a securities registration statement?

Accepted Answer

Part I is a prospectus that includes fin

Question 11

What Federal agency has Congressional authority to amend, modify, repeal, or reject auditing standards?

Accepted Answer

The Securi

Question 12

What is shelf registration?

Accepted Answer

A)  A procedure that allows the sale of securities to a small group of knowledgeable investors without any general solicitation. 
B)  A procedure that allows large companies to register securities with the SEC and then sell them over a period of two years without registering again within that period. 
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)  The registration of securities issued in connection with business combination transactions. 
A)  A procedure that allows the sale of securities to a small group of knowledgeable investors without any general solicitation. 
B)  A procedure that allows large companies to register securities with the SEC and then sell them over a period of two years without registering again within that period. 
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)  The registration of securities issued in connection with business combination transactions.

Question 13

What are the four interconnected goals that the SEC has tried to achieve?

Accepted Answer

The four interconnected goals include:
(

Question 14

For what purpose is the SEC's Registration Form S-4 used?

Accepted Answer

Registration Form S-4 is used

Question 15

What is included in Part II of a securities registration statement?

Accepted Answer

Part II includes information t

Question 16

Overruling the FASB.

Accepted Answer

A)  1 and 4. 
B)  1, 3, and 4. 
C)  1 and 3. 
D)  1, 2, and 4. 
E)  1, 2, 3, and 4. 
A)  1 and 4. 
B)  1, 3, and 4. 
C)  1 and 3. 
D)  1, 2, and 4. 
E)  1, 2, 3, and 4.

Exam 12: Financial Reporting and the Securities and Exchange Commission

What is a primary focus of the Sarbanes-Oxley Act?

A proxy statement must be filed with the SEC at least how many days before being distributed?

What was the purpose of the Securities Exchange Act of 1934?

Which statement is false regarding the Public Company Accounting Oversight Board (PCAOB)?

The SEC has usually restricted its role in establishing accounting principles to

What information is required in proxy statements? (1) Five-year summary of operations. (2) Five-year summary of industry segments. (3) Listing of company directors and executive officers. (4) Management discussion and analysis (MD&A).

Regulation S-X specifies:

What is Form 10-K?

A wraparound filing:

What is included in Part I of a securities registration statement?

What Federal agency has Congressional authority to amend, modify, repeal, or reject auditing standards?

What is shelf registration?

What are the four interconnected goals that the SEC has tried to achieve?

For what purpose is the SEC's Registration Form S-4 used?

What is included in Part II of a securities registration statement?

Overruling the FASB.

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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