Which of the Following Statements Regarding the Securities and Exchange

question 41

Multiple Choice

Which of the following statements regarding the Securities and Exchange Commission (SEC) is not true?

• A)SEC rules frequently require disclosures in addition to those required by GAAP.
• B)The SEC has the authority to establish and enforce accounting rules for public companies.
• C)The SEC is a private professional organization.
• D)Public companies must register with the SEC.

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Definitions:

Services

Intangible products provided to consumers, such as healthcare, education, and banking, which do not result in ownership of physical goods.

Educational Services

Professional services that encompass teaching and learning activities, including instruction, training, and other support provided by educational institutions.

NAFTA Agreement

Stands for North American Free Trade Agreement, a treaty entered into by the United States, Canada, and Mexico; effective January 1, 1994, to eliminate trade barriers and facilitate the exchange of goods and services.

North America

A continent located in the northern hemisphere, bordered by the Arctic Ocean to the north, the Atlantic Ocean to the east, the Pacific Ocean to the west, and South America to the south.