Why Do Accountants Come Under the Purview of Section 18(a)

question 6

Multiple Choice

Why do accountants come under the purview of Section 18(a) of the Securities Exchange Act of 1934?

• A) because they often file reports and other documents with the Securities and Exchange Commission (SEC) on behalf of clients
• B) because certified public accountants (CPAs) are directly employed by the Securities and Exchange Commission (SEC)
• C) because all companies require an accountant's approval before buying securities from the Securities and Exchange Commission (SEC)
• D) because securities can only be bought through a certified public accountant (CPA)

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Definitions:

Purely Competitive Market

A market structure characterized by many buyers and sellers, homogeneous products, and no barriers to entry or exit, leading to minimal market power for individual firms.

Long Run Adjustments

Changes made by firms or economies over time to adapt to market conditions, wherein all inputs can be varied and no factors are fixed.

Industry Profits

The total earnings generated by companies within a specific industry, after all costs and expenses are deducted.

Increasing-cost Industry

An industry in which the costs of production increase as the industry output increases, often due to the inputs' prices rising as demand for them grows.