Question 1

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

Accepted Answer

A)  Accounts receivable. 
B)  Notes receivable. 
C)  Treasury stock. 
D)  Debenture. 
E)  Investment contract. 
A)  Accounts receivable. 
B)  Notes receivable. 
C)  Treasury stock. 
D)  Debenture. 
E)  Investment contract. A

Question 2

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. C

Question 3

What Federal agency has Congressional responsibility to create auditing and accounting standards?

Accepted Answer

The SEC.

Question 4

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

Accepted Answer

A)  financial statements reviewed by an independent CPA. 
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)  financial statements reviewed by an independent CPA. 
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 5

Which one of the following regulates the subsequent trading of securities through brokers and exchanges?

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 6

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

Accepted Answer

Part II includes information t

Question 7

Name five securities offerings exempt from registration with the SEC.

Accepted Answer

(1) Securities sold to the residents of

Question 8

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 mandatory, 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 9

What is a private placement of securities?

Accepted Answer

A private placement of securit

Question 10

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 11

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 12

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 13

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

Accepted Answer

(1) Greed by corporate executives; (2) a

Question 14

EDGAR stands for:

Accepted Answer

A)  Electronic Debits, Gains, Assets and Revenues System. 
B)  Electronic Data Gathering, Analysis, and Retrieval System. 
C)  Explanatory Data Gathering, Analysis, and Retrieval System. 
D)  Explanatory Debits, Gains, Assets and Revenues System. 
E)  Electronic Data, Gross Analysis, and Revenues System. 
A)  Electronic Debits, Gains, Assets and Revenues System. 
B)  Electronic Data Gathering, Analysis, and Retrieval System. 
C)  Explanatory Data Gathering, Analysis, and Retrieval System. 
D)  Explanatory Debits, Gains, Assets and Revenues System. 
E)  Electronic Data, Gross Analysis, and Revenues System.

Question 15

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

Accepted Answer

The purpose of the Securities

Question 16

What information is required in proxy statements?

Accepted Answer

(1) Five-year summary of operations; (2)

Question 17

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 18

Briefly describe Regulation S-K. What is its purpose?

Accepted Answer

Regulation S-K establishes requirements

Question 19

Which one of the following is not a division of the SEC?

Accepted Answer

A)  the Division of Corporation Finance. 
B)  the Division of Investment Management. 
C)  the Division of Compliance Information. 
D)  the Division of Enforcement. 
E)  the Division of Trading and Markets. 
A)  the Division of Corporation Finance. 
B)  the Division of Investment Management. 
C)  the Division of Compliance Information. 
D)  the Division of Enforcement. 
E)  the Division of Trading and Markets.

Question 20

Which statement is false regarding the registration of public accounting firms with the PCAOB under the Sarbanes-Oxley Act?

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.

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

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

What Federal agency has Congressional responsibility to create auditing and accounting standards?

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

Which one of the following regulates the subsequent trading of securities through brokers and exchanges?

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

Name five securities offerings exempt from registration with the SEC.

What is a private placement of securities?

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

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

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

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

EDGAR stands for:

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

What information is required in proxy statements?

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

Briefly describe Regulation S-K. What is its purpose?

Which one of the following is not a division of the SEC?

Which statement is false regarding the registration of public accounting firms with the PCAOB under the Sarbanes-Oxley Act?

The Equity Method of Accounting for Investments

Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements - Intercompany Asset Transactions

Intercompany Debt, Consolidated Statement of Cash Flows, and Other Issues

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Accounting Standards

Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments

Accounting for State and Local Governments

Accounting for Not-For-Profit Organizations

Accounting for Estates and Trusts

Filters

Exam 12: Financial Reporting and the Securities and Exchange Commission

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

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

What Federal agency has Congressional responsibility to create auditing and accounting standards?

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

Which one of the following regulates the subsequent trading of securities through brokers and exchanges?

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

Name five securities offerings exempt from registration with the SEC.

What is a private placement of securities?

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

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

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

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

EDGAR stands for:

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

What information is required in proxy statements?

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

Briefly describe Regulation S-K. What is its purpose?

Which one of the following is not a division of the SEC?

Which statement is false regarding the registration of public accounting firms with the PCAOB under the Sarbanes-Oxley Act?

The Equity Method of Accounting for Investments

Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements - Intercompany Asset Transactions

Intercompany Debt, Consolidated Statement of Cash Flows, and Other Issues

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Accounting Standards

Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments

Accounting for State and Local Governments

Accounting for Not-For-Profit Organizations

Accounting for Estates and Trusts

Filters