Question 1

What is a proxy? Briefly explain the importance of a proxy solicitation and a proxy statement.

Accepted Answer

A proxy is a form signed by a stockholde

Question 2

EDGAR stands for:

Accepted Answer

A)  Electronic Debits, Gains, Assets and Revenues System. 
B)  Electronic Data Gathering, Analysis, and Retrieval System. 
C)  Explanatory Data Gathering, Analysis, and Retrieval System. 
D)  Explanatory Debits, Gains, Assets and Revenues System. 
E)  Electronic Data, Gross Analysis, and Revenues System. 
A)  Electronic Debits, Gains, Assets and Revenues System. 
B)  Electronic Data Gathering, Analysis, and Retrieval System. 
C)  Explanatory Data Gathering, Analysis, and Retrieval System. 
D)  Explanatory Debits, Gains, Assets and Revenues System. 
E)  Electronic Data, Gross Analysis, and Revenues System.

Question 3

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 4

What is a sophisticated investor?

Accepted Answer

A)  An investor with a net worth equal to or exceeding $1,000,000. 
B)  An investor holding an active CPA license. 
C)  An investor with a portfolio of 50 or more securities. 
D)  An investor having knowledge and experience in financial matters. 
E)  An investor currently serving as an audit committee member. 
A)  An investor with a net worth equal to or exceeding $1,000,000. 
B)  An investor holding an active CPA license. 
C)  An investor with a portfolio of 50 or more securities. 
D)  An investor having knowledge and experience in financial matters. 
E)  An investor currently serving as an audit committee member.

Question 5

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

Accepted Answer

There were financial reporting abuses in

Question 6

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 7

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

Accepted Answer

The Securi

Question 8

When must Form 8-K be filed with the SEC?

Accepted Answer

A)  Within forty-five days of the end of any quarter other than the fourth quarter of the fiscal year. 
B)  Within ninety days of the end of the fiscal year. 
C)  Within fifteen days of the occurrence of certain significant events. 
D)  Within sixty days of the end of the fiscal year. 
E)  When a relatively small company intends to issue securities. 
A)  Within forty-five days of the end of any quarter other than the fourth quarter of the fiscal year. 
B)  Within ninety days of the end of the fiscal year. 
C)  Within fifteen days of the occurrence of certain significant events. 
D)  Within sixty days of the end of the fiscal year. 
E)  When a relatively small company intends to issue securities.

Question 9

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 10

Which of the following is not a security as defined by the SEC?

Accepted Answer

A)  Accounts receivable. 
B)  Transferable share. 
C)  Treasury stock. 
D)  Debenture. 
E)  Investment contract. 
A)  Accounts receivable. 
B)  Transferable share. 
C)  Treasury stock. 
D)  Debenture. 
E)  Investment contract.

Question 11

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.

Question 12

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

Accepted Answer

Part II includes information t

Question 13

What are the responsibilities of the SEC's Division of Corporation Finance?

Accepted Answer

The Division of Corporation Finance has

Question 14

What is a primary focus of the Sarbanes-Oxley Act of 2002?

Accepted Answer

A primary focus of the Sarbane

Question 15

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 16

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

Accepted Answer

Registration Form S-4 is used

Question 17

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 18

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 19

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 20

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.

Exam 12: A: Financial Reporting and the Securities and Exchange Commission

What is a proxy? Briefly explain the importance of a proxy solicitation and a proxy statement.

EDGAR stands for:

What is Form 10-K?

What is a sophisticated investor?

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

A wraparound filing:

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

When must Form 8-K be filed with the SEC?

Regulation S-X specifies:

Which of the following is not a security as defined by the SEC?

Overruling the FASB.

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

What are the responsibilities of the SEC's Division of Corporation Finance?

What is a primary focus of the Sarbanes-Oxley Act of 2002?

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

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

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

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

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

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

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

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

Filters