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Flashcards in Deck6 Deck (20):
1

The SEC comments on accounting and auditing issues are called

Financial Reporting Releases (FRR's)

2

What division of the SEC oversees compliance with security acts

Division of Corporate Finance

3

The mission of the SEC is to protect (a) corporations (b) investors

(b) investors

4

Regulation S-X governs the form and content of financial statement disclosures T or F

True

5

Large accelerated filer ($700million) must file quarterly reports_______ days after the end of the period

40 days - note: none of the SEC guidelines are 30 days.

6

How many days does an excelerated filer (not $700million) have to file 10-K after the end of the fiscal year?

75 days - LARGE accelerated filers only have 60 days

7

Is the "product market share" a mandatory inclusion in the 10-K (annual report)?

NO

8

Which financial statement is dividends reported on?

Statement of owners equity

9

Reporting accounts receivable at Net Realizable Value is a departure from the accounting principle of Historical Cost. T or F

True

10

Net Realizable Value is a reasonable estimate of __________.

Fair Value

11

What is Net Realizable Value?

The amount that is expected to turn into cash

12

A gain/loss has to be considered "infrequent" and "unusual" to be left out of ordinary income. Where is it put then?

It is put below Income from Continuing Operations

13

What are General and Administrative Expenses?

Expenses that arent attributable to specific activities. G and A costs benefit the Entire firm instead of one specific function.

14

A Material Loss should be reported separately as a component of Income from Operations when it is Infrequent but not Unusual

True

15

G&A expenses benefit the entire firm and not just one specific unit

True

16

Only extraordinary income is reported net of taxes

True

17

Contingencies are disclosed when the occurrance of the liablility is "probable" not just "possible"

True

18

Beg Inv + COGM - End Inv = Cost of Sales

True

19

Unrealized gains on available for sale securities are recognized as income

True

20

"Operating Income", if reported, is reported net of tax(without tax taken into considerations) and goes above "Income from Continuing Operations"

True