Which Entity Requires Companies Issuing Publicly Traded Stock to Have

question 25

Multiple Choice

Which entity requires companies issuing publicly traded stock to have their financial statements audited by an external auditor?

• A)Financial Accounting Standards Board
• B)Securities and Exchange Commission
• C)Consumer Protection Agency
• D)Internal Revenue Service

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Definitions:

Financial Statement

Documents that provide an overview of a company's financial performance and condition, typically including the balance sheet, income statement, and cash flow statement.

Merchandising Business

A company involved in the purchase and sale of goods, typically aiming to sell at a higher price than purchase cost.

Automobile Dealer

A business entity that sells new or used cars at the retail level, based on a dealership contract with an automaker.

Liabilities

Financial obligations or debts that a business owes to external parties.