Accounting Quiz10

18 Questions

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Accounting Quizzes & Trivia

Questions and Answers
  • 1. 
    The SEC has usually restricted its role in establishing accounting principles to
    • A. 

      Developing accounting standards for particular industries.

    • B. 

      B. specifying the information that should be included in interim financial statements.

    • C. 

      The promulgation and issuance of SASs (Securities Accounting Standards).

    • D. 

      Determining required disclosures.

    • E. 

      Developing definitions of key accounting terms.

  • 2. 
    The SEC's role in the initial registration of securities to be publicly issued is:
    • A. 

      To provide data to the public regarding first-time issuance of securities.

    • B. 

      To give permission to an independent CPA firm to audit the registrant's financial statements.

    • C. 

      To ensure that the content of the registration filing is in compliance with securities regulations.

    • D. 

      To make the registrant's annual report available for public viewing.

    • E. 

      To ensure that securities issued are quality investments.

  • 3. 
    The goals of the SEC include all except which one of the following?
    • A. 

      Prohibiting the dissemination of materially misstated information

    • B. 

      Regulating the operation of securities markets.

    • C. 

      Ensuring that full and fair information is disclosed to all investors before the securities of a company are allowed to be bought and sold.

    • D. 

      Controlling the number of companies whose stock is listed on major stock exchanges.

    • E. 

      Preventing the misuse of information especially by inside parties.

  • 4. 
    A letter of comments would be issued by the SEC
    • A. 

      After receiving the company's Form 10-K.

    • B. 

      To indicate that a registration statement has been approved.

    • C. 

      To request clarification of a registration statement.

    • D. 

      In response to a company's filing of Form 8-K.

    • E. 

      To convey your pertinent comments to the SEC.

  • 5. 
    • A. 

      1,2,4

    • B. 

      1,3,4

    • C. 

      1,3

    • D. 

      1,2,3,4

    • E. 

      1,4

  • 6. 
    EDGAR stands for:
    • A. 

      Explanatory Data Gathering, Analysis, and Retrieval System.

    • B. 

      Electronic Data, Gross Analysis, and Revenues System.

    • C. 

      Electronic Data Gathering, Analysis, and Retrieval System.

    • D. 

      Electronic Debits, Gains, Assets and Revenues System.

    • E. 

      Explanatory Debits, Gains, Assets and Revenues System.

  • 7. 
    Filings with the SEC are divided generally into two broad categories:
    • A. 

      Registration statements and periodic filings.

    • B. 

      Reconciliation statements and periodic filings.

    • C. 

      Registration filings and reconciliation statements.

    • D. 

      Registration statements and perpetual filings.

    • E. 

      Reconciliation filings and perpetual filings.

  • 8. 
    Regulation S-K:
    • A. 

      Establishes requirements for nonfinancial information to be filed with the SEC.

    • B. 

      Prescribes the financial disclosure information that must be included in filings with the SEC.

    • C. 

      Controls the listing of securities by stock exchanges.

    • D. 

      Describes the internal controls a publicly traded company must maintain.

    • E. 

      Prescribes the form of financial statements to be filed with the SEC.

  • 9. 
    Audited financial statements in an annual report of an issuer that is subject to SEC regulation must include:
    • A. 

      Three balance sheets, two income statements, and two statements of cash flows.

    • B. 

      Two balance sheets, two income statements, and two statements of cash flows.

    • C. 

      Two balance sheets, three income statements, and three statements of cash flows.

    • D. 

      One balance sheet, one income statement, and one statement of cash flows.

    • E. 

      Three balance sheets, three income statements, and three statements of cash flows.

  • 10. 
    The audit committee of an entity subject to SEC regulation will do all of the following except:
    • A. 

      Sign certification of the annual financial statements.

    • B. 

      Approve nonaudit services provided by the independent audit firm.

    • C. 

      Be comprised only of individuals who are not members of management.

    • D. 

      Be responsible for agreeing to fee compensation of the independent audit firm.

    • E. 

      Serve as liaison between the board of directors and the independent audit firm.

  • 11. 
    Regulation S-X specifies:
    • A. 

      Requirements for the nonfinancial information to be filed with the SEC.

    • B. 

      The internal controls a publicly traded company must maintain.

    • C. 

      Which form a company must file to register new securities.

    • D. 

      The form and content of financial statements to be filed with the SEC.

    • E. 

      That the financial statements included in a company's annual report must be audited.

  • 12. 
    A wrap-around filing:
    • A. 

      May be used by large companies to sell securities over a period of two years without refiling with the SEC.

    • B. 

      May remain in effect for a period of one to five years

    • C. 

      Is a filing completed using the SEC's electronic filing system.

    • D. 

      Allows a company to simplify its form 10-K by referring to information in its annual report.

    • E. 

      Is a simplified registration procedure for securities to be issued by small companies.

  • 13. 
    Which one of the following registration statement forms is used by large issuers that already have at least $75 million voting stock held by nonaffiliates?
    • A. 

      S-1

    • B. 

      S-8

    • C. 

      S-11

    • D. 

      S-3

    • E. 

      S-4

  • 14. 
    Information required in proxy statements includes all except which of the following?
    • A. 

      Listing of company directors and executive officers.

    • B. 

      Two-year summary of industry segments, export sales, and foreign and domestic operations.

    • C. 

      Five-year summary of operations including sales, total assets, income from continuing operations, and cash dividends per share.

    • D. 

      Description of the business activities including principal products and sources and availability of raw materials.

    • E. 

      Market price of the company's common stock for each quarterly period within the two most recent fiscal years.

  • 15. 
    A proxy statement must be filed with the SEC at least how many days before being distributed?
    • A. 

      90

    • B. 

      70

    • C. 

      10

    • D. 

      30

    • E. 

      60

  • 16. 
    • A. 

      S-3

    • B. 

      S-8

    • C. 

      S-4

    • D. 

      S-1

    • E. 

      S-11

  • 17. 
    • A. 

      Within ninety days of the end of the fiscal year.

    • B. 

      When a relatively small company intends to issue securities.

    • C. 

      Within fifteen days of the occurrence of certain significant events.

    • D. 

      Within forty-five days of the end of any quarter other than the fourth quarter of the fiscal year.

    • E. 

      Within sixty days of the end of the fiscal year.

  • 18. 
    • A. 

      The excess of fair value over book value since the date of acquisition is revalued for the change in exchange rate.

    • B. 

      The subsidiary's stockholders' equity accounts as of the beginning of the year are eliminated.

    • C. 

      The cumulative translation adjustment included in the Investment in Subsidiary account is eliminated.

    • D. 

      The allocations of excess of fair value over book value at the date of acquisition are eliminated.

    • E. 

      The amount of equity income recognized by the parent in the current year is eliminated .