The Primary Responsibility of Security and Exchange Commissions with Respect

question 72

Multiple Choice

The primary responsibility of security and exchange commissions with respect to financial statements is to

• A) set generally accepted accounting principles (GAAP), which must be followed in their preparation.
• B) review accounting choices made by companies in their financial statements to ensure decision-making logic is sound.
• C) monitor financial statements to ensure full and plain disclosure of material information, thus maintaining compliance with listing requirements.
• D) monitor and analyze the information looking for signs of an improved or weakened financial condition.

---

Definitions:

Conscientiousness

A personality trait characterized by organization, dependability, diligence, and a strong sense of duty, often linked to academic and professional success.

Agreeableness

A personality trait characterized by being friendly, cooperative, and compassionate toward others.

Extraversion

A personality trait characterized by high levels of enthusiasm, sociability, and assertiveness.

Neuroticism

A personality trait characterized by a tendency towards anxiety, depression, anger, and emotional instability.