What Is the Relationship Between the Securities and Exchange Commission

question 21

Multiple Choice

What is the relationship between the Securities and Exchange Commission and accounting standard setting in the United States?

• A) The SEC requires all companies listed on an exchange to submit their financial statements to the SEC.
• B) The SEC coordinates with the FASB in establishing accounting standards.
• C) The SEC has a mandate to establish accounting standards for corporations within the U.S. capital markets.
• D) The SEC reviews financial statements for compliance with U.S. GAAP or IFRS.

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Definitions:

Intangible Property

Assets that do not have a physical presence yet hold value, such as intellectual property, copyrights, patents, and trademarks.

Chose in Action

A personal right to property which can only be claimed or enforced through legal action, not by taking physical possession.

Intellectual Property

Refers to creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names, and images used in commerce.

Affixed

Affixed means to be attached or securely connected to something else, typically in a permanent or semi-permanent manner.