While Formally the SEC Is Charged with the Responsibility for Establishing

question 10

Multiple Choice

While formally the SEC is charged with the responsibility for establishing accounting principles to be followed in the preparation of SEC filings, the impact of the SEC generally has been

• A)in its assistance to Congress with the development of tax law
• B)in guiding the development of stock exchanges
• C)ineffective in controlling foreign corporations and investors
• D)its informal review and approval of standards developed in the private sector prior to their release

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Definitions:

Amortization Schedule

A detailed table showing the periodic payments on a loan, with each payment allocated between interest and principal repayment.

Gross Debt Service Ratio

A financial ratio that compares an individual's total monthly debt payments to their gross monthly income.

Amortized

The process of paying off a debt with a fixed repayment schedule in regular installments over a period of time.

Loan Payments

The regular payments made to repay borrowed money, typically including both principal and interest components.