Which of the Following Organizations Requires Publicly Owned Companies to Be

question 219

Multiple Choice

Which of the following organizations requires publicly owned companies to be audited by independent accountants (CPAs) ?

• A) Securities and Exchange Commission (SEC)
• B) Public Company Accounting Oversight Board (PCAOB)
• C) Financial Accounting Standards Board (FASB)
• D) American Institute of Certified Public Accountants (AICPA)

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Definitions:

Decentralized Units

Subsections of an organization that operate semi-independently, making their own decisions and handling their specific operations.

Investment Turnover

A financial ratio that measures the efficiency of a company's investment in its assets by comparing net sales to average total assets.

Operating Income

The profit realized from a business's own operations, calculated before taxes and interest, also known as operating profit.

Divisional Operating Income

The earnings generated from the operations of a specific division within a company, excluding expenses and revenues not directly related to the division's core operations.