1. The SEC influences accounting standard setting in the United States through which ONE of the following?

a. The inclusion of the Chief Accountant of the SEC as one of the FASB members

b. Behind-the-scenes coordination and consultation with the FASB

c. Support of the American Accounting Association (AAA)

d. The establishment of a complete set of accounting standards that compete with the FASB rules

e. Frequent adjustments to IRS regulations

2. What is ONE danger in focusing a financial analysis solely on the data found in the historical financial statements?

a. Financial statements reflect fair values rather than leveraged values.

b. Financial statements reflect both fixed and variable costs.

c. Financial statements dont contain all the relevant information.

d. Financial statements are based on divisional data rather than segment data.