Which of the Following Is Correct About the PCAOB

question 57

Multiple Choice

Which of the following is correct about the PCAOB?

• A)The PCAOB receives its authority from U.S.Federal Law
• B)Auditing standards issued by the PCAOB must be approved by the U.S.Congress
• C)Anyone who wants to purchase stock on a U.S.stock exchange must follow the rules of the SEC
• D)All audit firms performing audits of public companies are registered with and agree to comply with the auditing procedures established by the PCAOB

---

Definitions:

Discount on Bonds Payable

The disparity between a bond's nominal value and its market price, occurring when the bond is traded at a price below its nominal value.

Straight-line Amortization

An accounting method of incrementally reducing the cost value of an intangible asset over its useful life.

Interest Payment

The payment a borrower makes to a lender as compensation for the use of borrowed money.

Journal Entry

A journal entry is a record of a financial transaction in the accounting records, showing the accounts and amounts to be debited and credited.