Advanced Accounting Chapter 12(Correctly solved)
Securities and exchange Commission correct answers was created by Act of Congress and is
responsible for ensuring that complete and reliable information concerning publicly traded
securities in available to investors
1. Securities Act of 1933 - regulates the initial offering of securities
2. Securities Exchange Act of 1934- regulates subsequent trading
3. Sarbanes-Oxley Act of 2002 correct answers The most significant legislative acts of the SEC
include
1. assuring adequate disclosure of data before securities can be bough and sold
2. preventing the misuse of information by inside parties
3. regulating the operation of stock exchanges and other securities markets
4. prohibiting the dissemination of materially misstated information correct answers what are the
goals of SEC
1. Regulation S-K
2. Regulation S-X correct answers What are the two primary sets of regulations regarding
disclosure requirements of the SEC
Regulation S-K correct answers establishes rules for all non-financial information, such as
management's discussion of the issuer's business activities
Regulation S-X correct answers prescribes the form and content of the financial statements that
are included in various SEC filings
.... correct answers - The SEC has the ultimate authority for accounting principles in this country,
although it has generally allowed the FASB to set official guidance
- The SEC's integrated disclosure system requires that most information that is reported to the
SEC must also go to the company's stockholders at various times throughout the year
Sarbanes Oxley Act 2002 correct answers - this was a direct result of the corporate accounting
scandals exposed in 2001 and 2002
- this legislation has had wide ranging impact on corporate financial reporting and the accounting
profession as a whole
Public Company Accounting Oversight Board correct answers - one of the most important
results of the SEC
- the 5 member board is appointed by the SEC and funded by fees assessed against publicly
traded companies
- the board has authority to enforce auditing, quality control, and independence standards
- all accounting firms that audit companies with securities that are publicly traded must register
with the Public Company Accounting Oversight Board
- all registered firms are subject to inspection by the Public Company Accounting Oversight
Board as often as each year
Securities and exchange Commission correct answers was created by Act of Congress and is
responsible for ensuring that complete and reliable information concerning publicly traded
securities in available to investors
1. Securities Act of 1933 - regulates the initial offering of securities
2. Securities Exchange Act of 1934- regulates subsequent trading
3. Sarbanes-Oxley Act of 2002 correct answers The most significant legislative acts of the SEC
include
1. assuring adequate disclosure of data before securities can be bough and sold
2. preventing the misuse of information by inside parties
3. regulating the operation of stock exchanges and other securities markets
4. prohibiting the dissemination of materially misstated information correct answers what are the
goals of SEC
1. Regulation S-K
2. Regulation S-X correct answers What are the two primary sets of regulations regarding
disclosure requirements of the SEC
Regulation S-K correct answers establishes rules for all non-financial information, such as
management's discussion of the issuer's business activities
Regulation S-X correct answers prescribes the form and content of the financial statements that
are included in various SEC filings
.... correct answers - The SEC has the ultimate authority for accounting principles in this country,
although it has generally allowed the FASB to set official guidance
- The SEC's integrated disclosure system requires that most information that is reported to the
SEC must also go to the company's stockholders at various times throughout the year
Sarbanes Oxley Act 2002 correct answers - this was a direct result of the corporate accounting
scandals exposed in 2001 and 2002
- this legislation has had wide ranging impact on corporate financial reporting and the accounting
profession as a whole
Public Company Accounting Oversight Board correct answers - one of the most important
results of the SEC
- the 5 member board is appointed by the SEC and funded by fees assessed against publicly
traded companies
- the board has authority to enforce auditing, quality control, and independence standards
- all accounting firms that audit companies with securities that are publicly traded must register
with the Public Company Accounting Oversight Board
- all registered firms are subject to inspection by the Public Company Accounting Oversight
Board as often as each year
