ACCT 403 ch14

10. The preparation of which of the following items is covered by Regulation S-K? A. Descriptions of business B. Pro forma disclosures C. Schedules D. Reports of accountants

A

15. Regulation D of the SEC presents important exemptions from full registration requirements for: A. private placements. B. issuances of securities by savings and loan associations. C. issuances of securities by common carriers regulated by the Interstate Commerce Commission. D. foreign companies.

A

16. Which of the following forms is the most comprehensive registration statement? A. Form S-1 B. Form F-2 C. Form S-3 D. Form S-2

A

23. Which of the following statements concerning Form 10-Q is NOT true? A. It is filed for all four quarters. B. It is the quarterly report to the SEC. C. It contains an update on significant matters occurring since the last quarter. D. It includes comparative financial statements prepared in accordance with APB 28.

A

32. Which of the following choices best describes correct use of the forms indicated? A. Option A B. Option B C. Option C D. Option D

A

7. Regulation S-X and Regulation S-K: A. govern the preparation of financial statements and associated disclosures. B. govern the registration requirements for private placements. C. outline responsibilities for audit committees of publicly held companies. D. prohibit artificial pyramids of capital in public utilities.

A

1. The Securities and Exchange Commission is responsible for: A. Option A B. Option B C. Option C D. Option D

B

17. When deficiencies are found in a registration statement that must be corrected before the securities may be offered for sale, which of the following is issued by the SEC? A. An audit opinion B. A comment letter C. A customary review D. A comfort letter

B

18. The purpose of a "tombstone ad" is: A. to inform investors an upcoming offering has been canceled. B. to inform investors of an upcoming offering. C. to inform investors an upcoming offering will be delayed for 30 days. D. to inform investors securities will be offered for sale after the company has responded to the SEC's comment letter.

B

2. Which regulation created the Securities and Exchange Commission? A. Securities Act of 1933 B. Securities Exchange Act of 1934 C. Investment Company Act of 1940 D. Garn-St. Germain Depository Institutions Act of 1982

B

24. Information concerning the unexpected resignation of one or more of the registrant's directors would be disclosed on which of the following forms? I. Form 8-Q II. Form 8-K A. I B. II C. Both I and II D. Neither I nor II

B

5. Which division of the SEC develops and administers the disclosure requirements for the securities acts and reviews all registration statements and other issue-oriented disclosures? A. Division of Enforcement B. Division of Corporation Finance C. Division of Investment Management D. Division of Market Regulation

B

6. Identify the regulation that created an entity which insures investors from possible losses if an investment house enters bankruptcy. A. Federal Deposit Insurance Protection Act B. Securities Investor Protection Act C. Investment Advisers Act D. Federal Bankruptcy Acts

B

11. Which of the following presents the results of actions taken against accountants, brokers, and other participants for filing false or misleading statements? A. Financial Reporting Releases B. Financial Reporting Interpretations C. Accounting and Auditing Enforcement Releases D. Staff Accounting Bulletins

C

14. Which of the following types of securities or securities transactions are exempt from the need to be registered under the Securities Act of 1933? I. Commercial paper with a maturity of nine months or less. II. Intrastate issues in which the securities are offered and sold only within one state. III. Securities exchanged by an issuer exclusively with its existing shareholders with no commission charged. A. I and II B. II C. I, II, and III D. III

C

19. Which of the following best describes a "red herring" prospectus? A. A shortened version of registration Form S-1 available to those companies that already have publicly traded securities. B. A prospectus containing material irregularities and deficiencies. C. Preliminary information provided to investors about an upcoming issue, and issued between the time a registration statement is presented to the SEC and its effective date. D. Disclosure in the business press, outlined in red, informing investors of an upcoming offering.

C

21. Accountants are liable for any materially false or misleading information contained in the registration statement filed with the SEC up to: A. the date the registration statement is filed. B. the date of the audit report. C. the effective date of the registration statement. D. the date securities are sold.

C

25. Proxy statements are: A. filed by an entity that acquires a beneficial ownership of more than 5 percent in a company. B. interim financial statements need not be audited. C. materials submitted to shareholders for votes on corporate matters. D. used to disclose unscheduled material events.

C

3. Which system helps the SEC accomplish its primary purpose of increasing the efficiency and fairness of the securities markets by expediting the receipt, acceptance, dissemination, and analysis of time-sensitive data filed with it? A. EDI B. ESEC C. EDGAR D. EMMA

C

8. Which regulation resulted in the creation of the Public Company Accounting Oversight Board? A. Investment Advisers Act B. Securities Investor Protection Act C. Sarbanes-Oxley Act D. Trust Indenture Act

C

12. Which of the following covers new or revised administrative practices and interpretations used by the SEC staff in reviewing financial statements? A. Securities Exchange Act releases B. Exchange Act industry guides C. Accounting and Auditing Enforcement Releases D. Staff Accounting Bulletins

D

13. In the issuer's annual report, how many years of audited financial statements must be presented? I. Three years of audited income statements II. Two years of audited balance sheets III. Three years of audited statements of cash flows A. I and II B. II and III C. I and III D. I, II, and III

D

20. Which of the following observations is true of the shelf registration rule? A. It is an option available to all listed companies. B. Shelf registration is limited to 25 percent of the company's currently outstanding stock. C. It allows private placements of an unlimited amount of securities. D. It allows large companies to select the optimal time to sell their stock.

D

22. Which of the following classes of information are included in the Form 10-K? I. Management's discussion and analysis II. Audited financial statements and footnotes III. Auditor's opinion on the company's internal control system A. I and II B. I and III C. II and III D. I, II, and III

D

4. Which of the following divisions of the SEC regulates national securities exchanges, brokers, and dealers of securities? A. Division of Investment Management B. Division of Corporation Finance C. Division of Corporation Regulation D. Division of Market Regulation

D

9. Regulation S-X presents the rules for preparing all of the following except: A. financial statements. B. footnotes. C. auditor's report. D. management's discussion.

D