A Policy Change Represents A

question 34

Multiple Choice

A policy change represents a:

• A)change in one aspect of the government's policy.
• B)systemic change in the relationship between the economy and the government.
• C)change from one economic system to another.
• D)change in the political system.

Recognize the types of disclosures required by GAAP and the SEC in financial statements.

Identify and describe the components and format of the balance sheet.

Explain the inclusion and disclosure of post-reporting period events in the financial statements.

Discuss the limitations of the balance sheet in financial reporting.

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Definitions:

Prospectus

A formal document that companies use to describe the securities they are offering for sale to investors.

SEC

The Securities and Exchange Commission, a U.S. federal agency that oversees the securities industry to protect investors and maintain fair, orderly, and efficient markets.

Advertising Tool

Any method or resource used by businesses to promote their products, services, or brand to potential customers.

Short-swing Profits

Profits earned by corporate insiders from buying and selling their company's stock within a short period, regulated by securities laws.