Question 1

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. A

Question 2

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. The Act created the SEC and empowered it to: (i) require reporting by publicly owned companies; and (ii) require registration of securities, security exchanges, and certain brokers and dealers of securities. The purpose of the Act is to also prohibit fraudulent and unfair behavior such as sales practice abuses and insider trading.

Question 3

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

Accepted Answer

There were financial reporting abuses in the 1920s by complex utility empires. The owners of the empires minimized the need for equity financing. The Act requires registration of interstate holding companies of public utilities.

Question 4

What is the purpose of Regulation S-K? Briefly describe requirements of Regulation S-K.

Accepted Answer

The purpose of Regulation S-K is to esta

Question 5

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

Accepted Answer

A primary focus of the Sarbane

Question 6

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

Accepted Answer

Rule 14c-3 is important to the accountin

Question 7

Hank Co. is preparing to issue stock. Its revenues for last year were $92,000,000, and it had $60,000,000 in stock held by non-affiliates. The company had been filing with the SEC for two years. Which one of the following forms should have been used for registration?

Accepted Answer

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

Question 8

Describe the two parts of the SEC registration statement.

Accepted Answer

Part I (the prospectus) contains extensi

Question 9

Name the two broad categories of filings with the SEC.

Accepted Answer

Registrati

Question 10

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 11

Which one of the following registration statement forms is used by large issuers that already have at least $75 million voting stock held by non-affiliates?

Accepted Answer

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

Question 12

What is a private placement of securities?

Accepted Answer

A private placement of securities is a s

Question 13

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 14

When must Form 8-K be filed with the SEC and in what situations must this form be used?

Accepted Answer

Form 8-K must be filed with the SEC with

Question 15

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 16

How has the SEC exercised its power with regard to the continuing evolution of accounting principles?Issuing Financial Reporting Releases (FRRs).Requiring additional disclosures in notes to financial statements.Declaring a moratorium on the use of specified accounting practices.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 17

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 18

How are the operations of the SEC funded?

Accepted Answer

The operations of the SEC are

Question 19

What are some ways by which the Sarbanes-Oxley Act attempts to ensure auditor independence from an audit client?

Accepted Answer

The Sarbanes-Oxley Act (SOX) forbids cer

Question 20

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.

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

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

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

What is the purpose of Regulation S-K? Briefly describe requirements of Regulation S-K.

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

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

Hank Co. is preparing to issue stock. Its revenues for last year were $92,000,000, and it had $60,000,000 in stock held by non-affiliates. The company had been filing with the SEC for two years. Which one of the following forms should have been used for registration?

Describe the two parts of the SEC registration statement.

Name the two broad categories of filings with the SEC.

What is shelf registration?

Which one of the following registration statement forms is used by large issuers that already have at least $75 million voting stock held by non-affiliates?

What is a private placement of securities?

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).

When must Form 8-K be filed with the SEC and in what situations must this form be used?

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

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

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

How are the operations of the SEC funded?

What are some ways by which the Sarbanes-Oxley Act attempts to ensure auditor independence from an audit client?

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

Accounting for Estates and Trusts

Accounting and Reporting for Private Not-For-Profit Organizations

Accounting for State and Local Governments, Part II

Accounting for State and Local Governments, Part I

Partnerships: Termination and Liquidation

Partnerships: Formation and Operation

Accounting for Legal Reorganizations and Liquidations

Worldwide Accounting Diversity and International Accounting Standards

Translation of Foreign Currency Financial Statements

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Segment and Interim Reporting

Consolidated Financial Statements - Ownership Patterns and Income Taxes

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

Consolidated Financial Statements Intra-Entity Asset Transactions

Consolidated Financial Statements and Outside Ownership

Consolidations - Subsequent to the Date of Acquisition

Consolidation of Financial Information

The Equity Method of Accounting for Investments

Filters

Exam 12: Financial Reporting and the Securities and Exchange Commission

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

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

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

What is the purpose of Regulation S-K? Briefly describe requirements of Regulation S-K.

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

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

Hank Co. is preparing to issue stock. Its revenues for last year were $92,000,000, and it had $60,000,000 in stock held by non-affiliates. The company had been filing with the SEC for two years. Which one of the following forms should have been used for registration?

Describe the two parts of the SEC registration statement.

Name the two broad categories of filings with the SEC.

What is shelf registration?

Which one of the following registration statement forms is used by large issuers that already have at least $75 million voting stock held by non-affiliates?

What is a private placement of securities?

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).

When must Form 8-K be filed with the SEC and in what situations must this form be used?

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

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

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

How are the operations of the SEC funded?

What are some ways by which the Sarbanes-Oxley Act attempts to ensure auditor independence from an audit client?

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

Accounting for Estates and Trusts

Accounting and Reporting for Private Not-For-Profit Organizations

Accounting for State and Local Governments, Part II

Accounting for State and Local Governments, Part I

Partnerships: Termination and Liquidation

Partnerships: Formation and Operation

Accounting for Legal Reorganizations and Liquidations

Worldwide Accounting Diversity and International Accounting Standards

Translation of Foreign Currency Financial Statements

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Segment and Interim Reporting

Consolidated Financial Statements - Ownership Patterns and Income Taxes

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

Consolidated Financial Statements Intra-Entity Asset Transactions

Consolidated Financial Statements and Outside Ownership

Consolidations - Subsequent to the Date of Acquisition

Consolidation of Financial Information

The Equity Method of Accounting for Investments

Filters