Question 1

Which of the following are issued by the SEC, as needed, to supplement Regulation S-X and Regulation S-K?

Accepted Answer

A)  SABs. 
B)  ASRs. 
C)  FRRs. 
D)  ARBs. 
E)  SRBs. 
A)  SABs. 
B)  ASRs. 
C)  FRRs. 
D)  ARBs. 
E)  SRBs. C

Question 2

The SEC's operating costs are supported through

Accepted Answer

A)  Tax revenues of the federal government. 
B)  Registration fees from issuers offering securities to the public. 
C)  Fees paid by stock exchanges. 
D)  Fees paid by stockbrokers. 
E)  Fees paid by accounting firms that practice before the SEC. 
A)  Tax revenues of the federal government. 
B)  Registration fees from issuers offering securities to the public. 
C)  Fees paid by stock exchanges. 
D)  Fees paid by stockbrokers. 
E)  Fees paid by accounting firms that practice before the SEC. B

Question 3

Regulation S-K:

Accepted Answer

A)  Controls the listing of securities by stock exchanges. 
B)  Establishes requirements for nonfinancial information to be filed with the SEC. 
C)  Prescribes the form of financial statements to be filed with the SEC. 
D)  Describes the internal controls a publicly traded company must maintain. 
E)  Prescribes the financial disclosure information that must be included in filings with the SEC. 
A)  Controls the listing of securities by stock exchanges. 
B)  Establishes requirements for nonfinancial information to be filed with the SEC. 
C)  Prescribes the form of financial statements to be filed with the SEC. 
D)  Describes the internal controls a publicly traded company must maintain. 
E)  Prescribes the financial disclosure information that must be included in filings with the SEC. B

Question 4

Lechter Co.is preparing to issue stock.Its revenues for last year were $85,000,000, and it had $52,000,000 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 5

What is the purpose of the SEC's Regulation S-K?

Accepted Answer

Regulation S-K estab

Question 6

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 7

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 8

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 9

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

Accepted Answer

Rule 14c-3 is important to the accountin

Question 10

What information needs to be included in Form 10-Q?

Accepted Answer

Information in Form 10-Q includes the fo

Question 11

The audit committee of an entity subject to SEC regulation will do all of the following except:

Accepted Answer

A)  Be responsible for agreeing to fee compensation of the independent audit firm. 
B)  Certify the annual financial statements. 
C)  Be comprised only of individuals who are not members of management. 
D)  Approve non-audit services provided by the independent audit firm. 
E)  Serve as liaison between the board of directors and the independent audit firm. 
A)  Be responsible for agreeing to fee compensation of the independent audit firm. 
B)  Certify the annual financial statements. 
C)  Be comprised only of individuals who are not members of management. 
D)  Approve non-audit services provided by the independent audit firm. 
E)  Serve as liaison between the board of directors and the independent audit firm.

Question 12

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 13

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 14

Which one of the following requires the audit committee to be responsible for the appointment and compensation of the external auditor?

Accepted Answer

A)  The Securities Act of 1933. 
B)  The Securities Exchange Act of 1934. 
C)  The Investment Company Act of 1940. 
D)  The Foreign Corrupt Practices Act of 1977. 
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 Foreign Corrupt Practices Act of 1977. 
E)  The Sarbanes-Oxley Act of 2002.

Question 15

Which one of the following requires the registration of mutual funds that engage in investing and trading in securities?

Accepted Answer

A)  The Securities Act of 1933. 
B)  The Securities Exchange Act of 1934. 
C)  The Investment Company Act of 1940. 
D)  The Foreign Corrupt Practices Act of 1977. 
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 Foreign Corrupt Practices Act of 1977. 
E)  The Sarbanes-Oxley Act of 2002.

Question 16

What was the purpose of the Securities Act of 1933?

Accepted Answer

The purpose of the Securities Act of 193

Question 17

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 18

Which of the following forms is used in connection with registration of securities by certain real estate companies?

Accepted Answer

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

Question 19

A proxy statement must be filed with the SEC at least how many days before being distributed?

Accepted Answer

A)  30 days. 
B)  60 days. 
C)  10 days. 
D)  90 days. 
E)  7 days. 
A)  30 days. 
B)  60 days. 
C)  10 days. 
D)  90 days. 
E)  7 days.

Question 20

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

Accepted Answer

The purpose of the Securities Exchange A

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

Which of the following are issued by the SEC, as needed, to supplement Regulation S-X and Regulation S-K?

The SEC's operating costs are supported through

Regulation S-K:

Lechter Co.is preparing to issue stock.Its revenues for last year were $85,000,000, and it had $52,000,000 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?

What is the purpose of the SEC's Regulation S-K?

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

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

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).

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

What information needs to be included in Form 10-Q?

The audit committee of an entity subject to SEC regulation will do all of the following except:

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 shelf registration?

Which one of the following requires the audit committee to be responsible for the appointment and compensation of the external auditor?

Which one of the following requires the registration of mutual funds that engage in investing and trading in securities?

What was the purpose of the Securities Act of 1933?

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

Which of the following forms is used in connection with registration of securities by certain real estate companies?

A proxy statement must be filed with the SEC at least how many days before being distributed?

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

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

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