Audited Financial Statements in an Annual Report of an Issuer

question 18

Multiple Choice

Audited financial statements in an annual report of an issuer that is subject to SEC regulation must include:

• A) three balance sheets, three income statements, and three statements of cash flows.
• B) three balance sheets, two income statements, and two statements of cash flows.
• C) one balance sheet, one income statement, and one statement of cash flows.
• D) two balance sheets, three income statements, and three statements of cash flows.
• E) two balance sheets, two income statements, and two statements of cash flows.

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Definitions:

Disparate Impact Discrimination

Occurs when policies, practices, or rules appear to be neutral but result in a disproportionate impact on a protected group.

Executive-Compensation Packages

The combination of salary, bonuses, shares, options, and other benefits provided to senior executives and corporate leaders as part of their employment agreement.

Securities Exchange Commission

A U.S. government agency responsible for regulating the securities industry, enforcing federal securities laws, and ensuring investor protection.

National Labor Relations Act

The National Labor Relations Act (or Wagner Act) created the NLRB, which administers most labor law in the United States.