Question 1

Describe the two parts of the SEC registration statement.

Accepted Answer

Part I (the prospectus) contains extensi

Question 2

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 3

The SEC's operating costs are supported through

Accepted Answer

A)  tax revenues of the federal government. 
B)  registration fees charged to issuers offering securities to the public. 
C)  fees paid by stock exchanges. 
D)  fees paid by stock brokers. 
E)  fees paid by accounting firms that practice before the SEC. 
A)  tax revenues of the federal government. 
B)  registration fees charged to issuers offering securities to the public. 
C)  fees paid by stock exchanges. 
D)  fees paid by stock brokers. 
E)  fees paid by accounting firms that practice before the SEC.

Question 4

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) sign certification of 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) sign certification of 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 5

What is required by the Trust Indenture Act of 1939?

Accepted Answer

The Trust Indenture Act of 193

Question 6

What was the purpose of the Securities Act of 1933?

Accepted Answer

The purpose of the Securities

Question 7

A wrap-around filing:

Accepted Answer

A)  may be used by large companies to sell securities over a period of two years without refiling with the SEC. 
B)  is a simplified registration procedure for securities to be issued by small companies. 
C)  allows a company to simplify its form 10-K by referring to information in its annual report. 
D)  is a filing completed using the SEC's electronic filing system. 
E)  may remain in effect for a period of one to five years. 
A)  may be used by large companies to sell securities over a period of two years without refiling with the SEC. 
B)  is a simplified registration procedure for securities to be issued by small companies. 
C)  allows a company to simplify its form 10-K by referring to information in its annual report. 
D)  is a filing completed using the SEC's electronic filing system. 
E)  may remain in effect for a period of one to five years.

Question 8

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 9

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 10

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)  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 11

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

Accepted Answer

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

Question 12

What is Form 10-K?

Accepted Answer

A)  a quarterly report filed with the SEC. 
B)  an annual report filed with the SEC. 
C)  a semiannual report filed with the SEC. 
D)  a form filed with the SEC before the company issues stock for the first time. 
E)  a form filed with the SEC before issuing stocks to acquire another company. 
A)  a quarterly report filed with the SEC. 
B)  an annual report filed with the SEC. 
C)  a semiannual report filed with the SEC. 
D)  a form filed with the SEC before the company issues stock for the first time. 
E)  a form filed with the SEC before issuing stocks to acquire another company.

Question 13

How are the operations of the SEC funded?

Accepted Answer

The operations of the SEC are

Question 14

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

Accepted Answer

Regulation S-K estab

Question 15

What is blue sky legislation?

Accepted Answer

Blue sky legislation represents state le

Question 16

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

Question 17

The SEC has usually restricted its role in establishing accounting principles to

Accepted Answer

A)  specifying the information that should be included in interim financial statements. 
B)  developing definitions of key accounting terms. 
C)  developing accounting standards for particular industries. 
D)  determining required disclosures. 
E)  the promulgation and issuance of SASs (Securities Accounting Standards). 
A)  specifying the information that should be included in interim financial statements. 
B)  developing definitions of key accounting terms. 
C)  developing accounting standards for particular industries. 
D)  determining required disclosures. 
E)  the promulgation and issuance of SASs (Securities Accounting Standards).

Question 18

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

Accepted Answer

The four interconnected goals include:
(

Question 19

For each of the following situations, select the best answer concerning information forms filed with the SEC:
(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 external auditor.

Accepted Answer

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

Question 20

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.

Describe the two parts of the SEC registration statement.

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

The SEC's operating costs are supported through

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

What is required by the Trust Indenture Act of 1939?

What was the purpose of the Securities Act of 1933?

A wrap-around filing:

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

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

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

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

What is Form 10-K?

How are the operations of the SEC funded?

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

What is blue sky legislation?

Which one 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?

The SEC has usually restricted its role in establishing accounting principles to

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

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

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

Describe the two parts of the SEC registration statement.

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

The SEC's operating costs are supported through

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

What is required by the Trust Indenture Act of 1939?

What was the purpose of the Securities Act of 1933?

A wrap-around filing:

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

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

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

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

What is Form 10-K?

How are the operations of the SEC funded?

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

What is blue sky legislation?

Which one 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?

The SEC has usually restricted its role in establishing accounting principles to

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

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

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