Question 1

How are the operations of the SEC funded?

Accepted Answer

The operations of the SEC are

Question 2

What are accredited investors?

Accepted Answer

Banks, insurance companies, an

Question 3

How has the Sarbanes-Oxley Act of 2002 changed the role of the audit committee?

Accepted Answer

The audit committee is now responsible f

Question 4

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

Question 5

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

Accepted Answer

Part I is a prospectus that includes aud

Question 6

The prospectus part of a registration contains all except which of the following?

Accepted Answer

A)  financial statements for the issuing company audited by an independent CPA along with appropriate supplementary data. 
B)  an explanation of the intended use of the proceeds to be generated by the sale of the new securities. 
C)  a description of the risks associated with the securities. 
D)  a description of the business and the properties owned by the company. 
E)  additional data concerning expenses of issuance. 
A)  financial statements for the issuing company audited by an independent CPA along with appropriate supplementary data. 
B)  an explanation of the intended use of the proceeds to be generated by the sale of the new securities. 
C)  a description of the risks associated with the securities. 
D)  a description of the business and the properties owned by the company. 
E)  additional data concerning expenses of issuance.

Question 7

A letter of comments would be issued by the SEC

Accepted Answer

A)  to request clarification of a registration statement. 
B)  to convey your pertinent comments to the SEC. 
C)  in response to a company's filing of Form 8-K. 
D)  after receiving the company's Form 10-K. 
E)  to indicate that a registration statement has been approved. 
A)  to request clarification of a registration statement. 
B)  to convey your pertinent comments to the SEC. 
C)  in response to a company's filing of Form 8-K. 
D)  after receiving the company's Form 10-K. 
E)  to indicate that a registration statement has been approved.

Question 8

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 9

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

Accepted Answer

A)  financial statements reviewed by an independent CPA. 
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)  financial statements reviewed by an independent CPA. 
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 10

Which statement is false regarding the registration of public accounting firms with the PCAOB under the Sarbanes-Oxley Act?

Accepted Answer

A)  Registration is required of all U.S. firms that prepare, issue, or participate in the preparation of an audit report for an entity that issues securities. 
B)  Foreign accounting firms are exempt from registration. 
C)  Disclosure requirements include annual fees received from each issuer for the firm's audit and non-audit services. 
D)  The Public Company Accounting Oversight Board subjects registered firms to periodic inspections. 
E)  Information regarding disagreements between the issuer and the audit firm during the previous year must be disclosed. 
A)  Registration is required of all U.S. firms that prepare, issue, or participate in the preparation of an audit report for an entity that issues securities. 
B)  Foreign accounting firms are exempt from registration. 
C)  Disclosure requirements include annual fees received from each issuer for the firm's audit and non-audit services. 
D)  The Public Company Accounting Oversight Board subjects registered firms to periodic inspections. 
E)  Information regarding disagreements between the issuer and the audit firm during the previous year must be disclosed.

Question 11

Which one of the following regulates the initial offering of securities by a company or underwriter?

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 12

How has the SEC exercised its power with regard to the continuing evolution of accounting principles?
1) Issuing Financial Reporting Releases (FRRs).
2) Requiring additional disclosures in notes to financial statements.
3) Declaring a moratorium on the use of specified accounting practices.
4) 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 13

What information needs to be included in Form 10-Q?
1) Income statements for the most recent quarter and for the year to date as well as for the comparative periods in the previous year.
2) Income statements for the most recent quarter and for the year to date as well as for the comparative periods in the previous two years.
3) A statement of cash flows is mandatory, but only for the year to date as well as for the corresponding period in the preceding year.
4) Two balance sheets: one for the end of the most recent quarter and one showing the company's financial position at the end of the previous fiscal year.

Accepted Answer

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

Question 14

Which one of the following is not a characteristic of the Public Company Accounting Oversight Board?

Accepted Answer

A)  Minimizes self-regulation in the accounting profession. 
B)  Has the authority to amend, modify, repeal, or reject any audit standard of the ASB. 
C)  Only one member can be an accountant, past or present. 
D)  SEC has oversight and enforcement authority over the Board. 
E)  Enforces auditing, quality control, and independence standards and rules. 
A)  Minimizes self-regulation in the accounting profession. 
B)  Has the authority to amend, modify, repeal, or reject any audit standard of the ASB. 
C)  Only one member can be an accountant, past or present. 
D)  SEC has oversight and enforcement authority over the Board. 
E)  Enforces auditing, quality control, and independence standards and rules.

Question 15

Briefly describe Regulation S-K. What is its purpose?

Accepted Answer

Regulation S-K establishes requirements

Question 16

When is the SEC's Registration Form S-4 used?

Accepted Answer

Registration Form S-4 is used

Question 17

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.

How are the operations of the SEC funded?

What are accredited investors?

How has the Sarbanes-Oxley Act of 2002 changed the role of the audit committee?

Which one 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?

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

The prospectus part of a registration contains all except which of the following?

A letter of comments would be issued by the SEC

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

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

Which statement is false regarding the registration of public accounting firms with the PCAOB under the Sarbanes-Oxley Act?

Which one of the following regulates the initial offering of securities by a company or underwriter?

Which one of the following is not a characteristic of the Public Company Accounting Oversight Board?

Briefly describe Regulation S-K. What is its purpose?

When is the SEC's Registration Form S-4 used?

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

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

How are the operations of the SEC funded?

What are accredited investors?

How has the Sarbanes-Oxley Act of 2002 changed the role of the audit committee?

Which one 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?

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

The prospectus part of a registration contains all except which of the following?

A letter of comments would be issued by the SEC

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

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

Which statement is false regarding the registration of public accounting firms with the PCAOB under the Sarbanes-Oxley Act?

Which one of the following regulates the initial offering of securities by a company or underwriter?

Which one of the following is not a characteristic of the Public Company Accounting Oversight Board?

Briefly describe Regulation S-K. What is its purpose?

When is the SEC's Registration Form S-4 used?

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

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