Question

5. Financial Reporting Releases (FRRs) and Staff Accounting Bulletins (SABs) are two pronouncements is- sued by the SEC. How do FRRs and SABs differ? a. FRRs are part of the 1934 Securities Exchange Act while SABs are not. b. SABs represent the official rules of the SEC while FRRs do not c. SABs represent amendments to Regulation S-X, FRRs do not d. FRRs represent requirements applicable to the form and content of financial statements filed with the SEC, SABs represent accounting interpretations followed by the SEC 6. Which of the following statements related to registration of new securities is false? Registration of new securities is governed by the Securities Act of 1933 b. Form S-1, the basic form for new security registration, is an elaborate checklist of rules to be fol- lowed and questions to be answered a. C. A "private placement" may be exempt from detailed registration requirements d. The independent public accountant reviews and audits information included in the registration statement 7. Which of the following statements related to the SEC's periodic reporting requirements is false? a. Form 10-K, the annual report, is governed only by Regulation S-X, not Regulation S-K b. Financial statements in Form 10-Q, the quarterly report, follow typical interim reporting principles contained in ASC Topic 270 C. Required Form 10-Q financial statements include balance sheets, statements of income and compre- hensive income and cash flow statements nts may include fewer line items than those in Form 10-K d. Form 10-Q financial stateme

Help Please Thank You!!

Answer 1

5.

Answer is D
Financial Reporting Releases represent requirements applicable to the form and content of financial statements filed with the Securities and Exchange Commission whereas Staff Accounting Bulletins represent the accounting interpretations followed by the Securities and Exchange Commission

6.

Answer is B
Form S-1 is NOT an elaborate checklist of rules to be followed or questions to be answered. it instead lays down information about the planned use of funds that are being raised, the existing business tree and process, and a short prospectus.

7.

Answer is A
If you refer the Securities and Exchange Act of 1934 it mentions the applicable rules and regulations. Form 10K is mandatorily to be filed by entities with companies having atleast $10 million in assets and a class of equity held by more than 2,000 owners. It is governed by both Regulations S-K and regulations S-X.