The Third Party Who Checks Annual Financial Statements to Ensure

question 97

Multiple Choice

The third party who checks annual financial statements to ensure that they are prepared according to GAAP and verifies that the information reported is reliable is the:

• A)NYSE Enforcement Board.
• B)Accounting Standards Board.
• C)Securities and Exchange Commission (SEC).
• D)auditor.

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Definitions:

Operating Cash Payments

Cash payments made by a business for its operational activities, such as paying for goods, services, and employee salaries.

Equity Securities

Financial instruments representing ownership interest in a corporation, such as stocks.

Debt Securities

Financial instruments representing a loan made by the investor to the issuer, which can include government bonds, corporate bonds, and other types of debts.