How Has the SEC Exercised Its Power with Regard to the Continuing

question 16

Multiple Choice

How has the SEC exercised its power with regard to the continuing evolution of accounting principles?Issuing Financial Reporting Releases (FRRs) .Requiring additional disclosures in notes to financial statements.Declaring a moratorium on the use of specified accounting practices.Overruling the FASB.

• A) 1 and 4.
• B) 1, 3, and 4.
• C) 1 and 3.
• D) 1, 2, and 4.
• E) 1, 2, 3, and 4.

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Definitions:

Self-Handicapping

A cognitive strategy by which people avoid effort in the hopes of keeping potential failure from hurting self-esteem.

Self-Complexity

A concept in psychology that describes the extent to which an individual’s self-concept is comprised of multiple and distinct aspects.

Self-Serving Attributional Bias

The common tendency to attribute one’s successes to personal characteristics and failures to external factors.

Self-Handicapping

A strategy where individuals create obstacles for themselves to provide an excuse for potential failure, thereby protecting self-esteem.