Question 1

Information required in proxy statements includes all except which of the following?

Accepted Answer

A)  listing of company directors and executive officers. 
B)  description of the business activities including principal products and sources and availability of raw materials. 
C)  market price of the company's common stock for each quarterly period within the two most recent fiscal years. 
D)  five-year summary of operations including sales, total assets, income from continuing operations, and cash dividends per share. 
E)  two-year summary of industry segments, export sales, and foreign and domestic operations. 
A)  listing of company directors and executive officers. 
B)  description of the business activities including principal products and sources and availability of raw materials. 
C)  market price of the company's common stock for each quarterly period within the two most recent fiscal years. 
D)  five-year summary of operations including sales, total assets, income from continuing operations, and cash dividends per share. 
E)  two-year summary of industry segments, export sales, and foreign and domestic operations. E

Question 2

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

Accepted Answer

The investor.

Question 3

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

Accepted Answer

The purpose of the Securities Exchange Act of 1934 was to regulate the trading of previously issued securities through brokers and exchanges.

Question 4

What Federal agency has Congressional responsibility to create auditing and accounting standards?

Accepted Answer

The answer of What Federal agency has Congressional responsibility to...

Question 5

Why is the SEC's Rule 14c-3 important to the accounting profession?

Accepted Answer

Rule 14c-3 is important to the

Question 6

What are some of the reasons for the corporate scandals of 2001 and 2002?

Accepted Answer

(1) Greed by corporate executives; (2) a

Question 7

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

Accepted Answer

The Division of Corporation Finance has

Question 8

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

Accepted Answer

A proxy is a form signed by the sharehol

Question 9

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 10

What is blue sky legislation?

Accepted Answer

Blue sky legislation represents state le

Question 11

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 are allowed to 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 are allowed to be bought and sold. 
E)  preventing the misuse of information especially by inside parties.

Question 12

Name five securities offerings exempt from registration with the SEC.

Accepted Answer

(1) Securities sold to the residents of

Question 13

What is a private placement of securities?

Accepted Answer

A private placement of securit

Question 14

What is the 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 15

What is a wrap-around filing?

Accepted Answer

A wrap-around filing is a meth

Question 16

Which one of the following regulates the subsequent trading of securities through brokers and exchanges?

Accepted Answer

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

Question 17

Name the two broad categories of filings with the SEC.

Accepted Answer

Registrati

Question 18

Audited financial statements in an annual report of an issuer that is subject to SEC regulation must include:

Accepted Answer

A)  three balance sheets, three income statements, and three statements of cash flows. 
B)  three balance sheets, two income statements, and two statements of cash flows. 
C)  one balance sheet, one income statement, and one statement of cash flows. 
D)  two balance sheets, three income statements, and three statements of cash flows. 
E)  two balance sheets, two income statements, and two statements of cash flows. 
A)  three balance sheets, three income statements, and three statements of cash flows. 
B)  three balance sheets, two income statements, and two statements of cash flows. 
C)  one balance sheet, one income statement, and one statement of cash flows. 
D)  two balance sheets, three income statements, and three statements of cash flows. 
E)  two balance sheets, two income statements, and two statements of cash flows.

Question 19

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 20

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

Accepted Answer

There were financial reporting abuses in

Information required in proxy statements includes all except which of the following?

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

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

What Federal agency has Congressional responsibility to create auditing and accounting standards?

Why is the SEC's Rule 14c-3 important to the accounting profession?

What are some of the reasons for the corporate scandals of 2001 and 2002?

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

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

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

What is blue sky legislation?

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

Name five securities offerings exempt from registration with the SEC.

What is a private placement of securities?

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

What is a wrap-around filing?

Which one of the following regulates the subsequent trading of securities through brokers and exchanges?

Name the two broad categories of filings with the SEC.

Audited financial statements in an annual report of an issuer that is subject to SEC regulation must include:

EDGAR stands for:

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

The Equity Method of Accounting for Investments

Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements Intra-Entity Asset Transactions

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

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Accounting Standards

Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments

Accounting for State and Local Governments

Accounting and Reporting for Private Not-For-Profit Organizations

Accounting for Estates and Trusts

Filters

Exam 12: Financial Reporting and the Securities and Exchange Commission

Information required in proxy statements includes all except which of the following?

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

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

What Federal agency has Congressional responsibility to create auditing and accounting standards?

Why is the SEC's Rule 14c-3 important to the accounting profession?

What are some of the reasons for the corporate scandals of 2001 and 2002?

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

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

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

What is blue sky legislation?

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

Name five securities offerings exempt from registration with the SEC.

What is a private placement of securities?

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

What is a wrap-around filing?

Which one of the following regulates the subsequent trading of securities through brokers and exchanges?

Name the two broad categories of filings with the SEC.

Audited financial statements in an annual report of an issuer that is subject to SEC regulation must include:

EDGAR stands for:

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

The Equity Method of Accounting for Investments

Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements Intra-Entity Asset Transactions

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

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Accounting Standards

Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments

Accounting for State and Local Governments

Accounting and Reporting for Private Not-For-Profit Organizations

Accounting for Estates and Trusts

Filters