Question 1

Which one of the following prohibits fraudulent and unfair behavior such as sales practice abuses and insider trading?

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 2

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 3

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 4

What is private placement of securities?

Accepted Answer

A)  A procedure that allows a company to register securities and then sell them over a period of two years without reregistering. 
B)  A procedure that allows the sale of securities to no more than 35 sophisticated knowledgeable investors, with no general solicitation allowed. 
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)  A sale of securities to no more than 50 accredited investors, with no general solicitation allowed. 
A)  A procedure that allows a company to register securities and then sell them over a period of two years without reregistering. 
B)  A procedure that allows the sale of securities to no more than 35 sophisticated knowledgeable investors, with no general solicitation allowed. 
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)  A sale of securities to no more than 50 accredited investors, with no general solicitation allowed.

Question 5

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.

Question 6

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

Accepted Answer

A)  A listing of directors and executive officers. 
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)  A listing of directors and executive officers. 
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 7

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

Accepted Answer

The answer of Who has the responsibility for the evaluation...

Question 8

Which 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-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 9

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

Accepted Answer

The corporate scandals of 2001 and 2002

Question 10

What is required by the Trust Indenture Act of 1939?

Accepted Answer

The Trust Indenture Act of 193

Question 11

Name five securities offerings exempt from registration with the SEC.

Accepted Answer

Securities offerings exempt from registr

Question 12

Which one of the following forms is used in connection with employee stock plans?

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 13

Which one of the following requires the maintenance of accounting records and adequate internal accounting controls?

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)  Insider Trading Sanctions Act of 1984. 
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)  Insider Trading Sanctions Act of 1984.

Question 14

What is a wraparound filing?

Accepted Answer

A wraparound filing is a method of filin

Question 15

Which one of the following forms is used when no other form is prescribed?

Accepted Answer

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

Question 16

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 17

What is blue sky legislation?

Accepted Answer

Blue sky legislation represents state le

Question 18

What is a private placement of securities?

Accepted Answer

A private placement of securities is a s

Question 19

Which one of the following forms is used when companies have filed with the SEC for less than 36 months but are not large enough to file form S-3?

Accepted Answer

A)  S-8. 
B)  S-6. 
C)  S-4. 
D)  S-1. 
E)  S-11. 
A)  S-8. 
B)  S-6. 
C)  S-4. 
D)  S-1. 
E)  S-11.

Question 20

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

Accepted Answer

Part I is a prospectus that includes fin

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

Which one of the following prohibits fraudulent and unfair behavior such as sales practice abuses and insider trading?

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

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

What is private placement of securities?

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

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

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

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

What is required by the Trust Indenture Act of 1939?

Name five securities offerings exempt from registration with the SEC.

Which one of the following forms is used in connection with employee stock plans?

Which one of the following requires the maintenance of accounting records and adequate internal accounting controls?

What is a wraparound filing?

Which one of the following forms is used when no other form is prescribed?

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

What is blue sky legislation?

What is a private placement of securities?

Which one of the following forms is used when companies have filed with the SEC for less than 36 months but are not large enough to file form S-3?

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

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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