1)What is the SEC's position on companies that communicate with investors on social media?

a)It is legal so long as companies inform investors which outlets they intend to use

b)It is illegal to do so

c)There are no limitations on companies communicating through social media

d)It is legal so long as the postings are restricted to Facebook

2)Motivations to smooth net income over time include each of the following except:

a)Maximize bonuses and stock option values

b)Make it appear managers are doing better than they really are

c)Minimize overall taxes

d)Steady increase in earnings each year