The SEC Has Usually Restricted Its Role in Establishing Accounting

question 50

Multiple Choice

The SEC has usually restricted its role in establishing accounting principles to

• A) specifying the information that should be included in interim financial statements.
• B) developing definitions of key accounting terms.
• C) developing accounting standards for particular industries.
• D) determining required disclosures.
• E) the promulgation and issuance of SASs (Securities Accounting Standards).

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Definitions:

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to another party, if the latter has reasonably relied on that promise to their detriment.

Preliminary Performance

Initial actions or activities undertaken before the main performance, often to prepare or test.

Statute of Frauds

A legal principle that requires certain types of contracts and agreements to be written and signed to be considered enforceable.

Interest in Land

Legal rights or investments in real property, including ownership or usage rights.