Question 1

The SEC's role in the initial registration of securities to be publicly issued is:

Accepted Answer

A)  To ensure that the content of the registration filing is in compliance with securities regulations. 
B)  To ensure that securities issued are quality investments. 
C)  To provide data to the public regarding first-time issuance of securities. 
D)  To give permission to an independent CPA firm to audit the registrant's financial statements. 
E)  To make the registrant's annual report available for public viewing. 
A)  To ensure that the content of the registration filing is in compliance with securities regulations. 
B)  To ensure that securities issued are quality investments. 
C)  To provide data to the public regarding first-time issuance of securities. 
D)  To give permission to an independent CPA firm to audit the registrant's financial statements. 
E)  To make the registrant's annual report available for public viewing.

Question 2

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 necessary, 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 3

Which of the following securities offerings is not exempt from registration prior to their sale?

Accepted Answer

A)  Securities issued to a company's board of directors. 
B)  Securities issued by governments. 
C)  Securities issued by banks. 
D)  Securities issued by savings and loan associations. 
E)  Offerings of no more than $1 million made to any number of investors within a 12-month period. 
A)  Securities issued to a company's board of directors. 
B)  Securities issued by governments. 
C)  Securities issued by banks. 
D)  Securities issued by savings and loan associations. 
E)  Offerings of no more than $1 million made to any number of investors within a 12-month period.

Question 4

Which statement is false regarding the Public Company Accounting Oversight Board (PCAOB)?

Accepted Answer

A)  Regulates audit standards and independent audit firms. 
B)  Has five members appointed by the SEC. 
C)  Allows all members to be accountants, past or present. 
D)  Is under the oversight and enforcement of the SEC. 
E)  Is funded by fees levied on all publicly traded companies. 
A)  Regulates audit standards and independent audit firms. 
B)  Has five members appointed by the SEC. 
C)  Allows all members to be accountants, past or present. 
D)  Is under the oversight and enforcement of the SEC. 
E)  Is funded by fees levied on all publicly traded companies.

Question 5

Name the two broad categories of filings with the SEC.

Accepted Answer

Registrati

Question 6

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 7

Which one of the following is not a prescribed event for the filing of Form 8-K?

Accepted Answer

A)  Bankruptcy or receivership. 
B)  Changes in control of the registrant. 
C)  Resignation of a middle manager. 
D)  Changes in the registrant's independent auditor. 
E)  Acquisitions or dispositions of assets. 
A)  Bankruptcy or receivership. 
B)  Changes in control of the registrant. 
C)  Resignation of a middle manager. 
D)  Changes in the registrant's independent auditor. 
E)  Acquisitions or dispositions of assets.

Question 8

Which one of the following Federal laws was enacted in 1935?

Accepted Answer

A)  The Securities Act. 
B)  The Securities Exchange Act. 
C)  The Trust Indenture Act. 
D)  The Investment Company Act. 
E)  The Public Utility Holding Company Act. 
A)  The Securities Act. 
B)  The Securities Exchange Act. 
C)  The Trust Indenture Act. 
D)  The Investment Company Act. 
E)  The Public Utility Holding Company Act.

Question 9

What is shelf registration?

Accepted Answer

Shelf registration is a proced

Question 10

What are the four interconnected goals that the SEC has tried to achieve?

Accepted Answer

The four interconnected goals include:
(

Question 11

Describe the two parts of the SEC registration statement.

Accepted Answer

Part I (the prospectus) contains extensi

Question 12

When would a letter of comments 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 13

What information is required in proxy statements?

Accepted Answer

Proxy statements must include the follow

Question 14

How are the operations of the SEC funded?

Accepted Answer

The operations of the SEC are

Question 15

For each of the following situations, identify the type of form to be filed with the SEC for disclosure purposes:
(A) Form 10-K
(B) Form 10-Q
(C) Form 8-K
(D) Not required
___ 1.A unique or significant happening.
___ 2.Annual information required by Regulation S-X.
___ 3.Changes in control of the registrant.
___ 4.Interim financial statements.
___ 5.Fourth quarter income statement.
___ 6.Bankruptcy.
___ 7.Annual information required by Regulation S-K.
___ 8.Income statement for the current quarter, year-to-date, and comparative periods in the previous year.
___ 9.Changes in bookkeeping staff.
___ 10.Changes in the registrant's independent auditor.

Accepted Answer

(1) C; (2) A; (3) C;

Question 16

Which statement is false regarding the registration of public accounting firms with the PCAOB?

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.

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

The SEC's role in the initial registration of securities to be publicly issued is:

Which of the following securities offerings is not exempt from registration prior to their sale?

Which statement is false regarding the Public Company Accounting Oversight Board (PCAOB)?

Name the two broad categories of filings with the SEC.

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

Which one of the following is not a prescribed event for the filing of Form 8-K?

Which one of the following Federal laws was enacted in 1935?

What is shelf registration?

What are the four interconnected goals that the SEC has tried to achieve?

Describe the two parts of the SEC registration statement.

When would a letter of comments be issued by the SEC?

What information is required in proxy statements?

How are the operations of the SEC funded?

Which statement is false regarding the registration of public accounting firms with the PCAOB?

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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