Accounting Quiz9

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1. What is form 10-K?

A semiannual report filed with the SEC.

A quarterly report filed with the SEC.

An annual report filed with the SEC.

A form filed with the SEC before issuing stocks to acquire another company.

A form filed with the SEC before the company issues stock for the first time.

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2. What first name or nickname would you like us to use?

You may optionally provide this to label your report, leaderboard, or certificate.

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

Foreign accounting firms are exempt from registration.

Disclosure requirements include annual fees received from each issuer for the firm's audit and nonaudit services.

Information regarding disagreements between the issuer and the audit firm during the previous year must be disclosed.

The Public Company Accounting Oversight Board subjects registered firms to periodic inspections.

3. What is private placement of securities?

A procedure that allows the sale of securities to a small group of sophisticated knowledgeable investors, without any general solicitation.

A method of filing Form 10-K with the SEC.

A sale of securities to 35 or fewer accredited investors.

The registration of mutual funds that engage in investing and trading securities.

4. What is the minimum net worth of those who are considered accredited investors?

1,000,000

2,000,000

200,000

400,000

500,000

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

Additional data concerning expenses of issuance.

An explanation of the intended use of the proceeds to be generated by the sale of the new securities.

A description of the risks associated with the securities.

Financial statements for the issuing company audited by an independent CPA along with appropriate supplementary data.

A description of the business and the properties owned by the company.

6. What is shelf registration?

The registration of securities issued in connection with business combination transactions.

The registration of mutual funds that engage in investing and trading securities.

A procedure that allows the sale of securities to a small group of knowledgeable investors without any general solicitation.

A method of filing Form 10-K with the SEC.

7. 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.

2 and 4.

1 and 3.

1, 3, and 4.

1 and 2.

2, 3, and 4.

8. The SEC's operating costs are supported through

Fees paid by stock brokers.

Tax revenues of the federal government.

Fees paid by accounting firms that practice before the SEC.

Fees paid by stock exchanges.

Registration fees charged to issuers offering securities to the public.

9. What is the primary focus of the Sarbanes-Oxley Act?

Regulation of the continuous reporting by publicly owned companies.

Regulation of independent audit firms and audit standards.

Accounting standards and penalties against persons who profit from illegal use of inside information.

Accounting standards and registration of investment companies that engage in investing and trading in securities.

Accounting standards and the registration of securities.

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

A description of the risks associated with the securities.

A description of the properties of the registrant.

A description of the business of the registrant.

An explanation of the intended use of the proceeds.

Financial statements reviewed by an independent CPA.

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