MULTIPLE CHOICE QUESTIONS

1. _________________ are the processes and procedures that a company uses to provide reasonable assurance that its financial reports are reliable.

Group of answer choices

A. External

B. Risk assessment

C. Internal controls

D. Disclosure controls

2. SOX ______________ requires CEOs and CFOs to certify a companys SEC reports.

Group of answer choices

A. Section 404

B. Section 302

C. Section 708

D. Section 906

3. The main goal of ______________ is to protect shareholders and investors from financial fraud.

Group of answer choices

A. Gramm-Leach-Bliley Act

B. Sarbanes-Oxley Act (SOX)

C. Securities and Exchange Commission

D. Public Company Accounting Oversight Board

4. All of the following are types of information included on a Form 10-K except:

Group of answer choices

A. lists of employees and subcontractors

B. auditors report

C. financial statements

D. explanation of how the company is organized and operates

5. Which of the following was not one of the outcomes of the Enron scandal?

Group of answer choices

A. Investors started to significantly lose confidence in large public companies.

B. The SEC began to require that the accuracy of financial statements be certified in a number of different ways.

C. Public companies are required to file one comprehensive financial disclosure statement with the SEC.

D. The SEC began to require more information to be reported on its financial statements.

6. Which of the following is not one of the events that trigger a Form 8-K disclosure requirement?

Group of answer choices

A. getting a loan

B. acquiring an inheritance

C. filing for bankruptcy

D. selling off significant assets

7. The U.S. Securities and Exchange Commission reviews a public companys Form 10-K at least once every ____________ year.

Group of answer choices

A. four

B. five

C. two

D. three

8. A companys _______________________ provides a summary of the companys financial condition at a certain period.

Group of answer choices

A. balance sheet

B. prospectus

C. profit and loss statement

D. futures contract

9. Stocks and bonds are called ____________.

Group of answer choices

A. dividends

B. securities

C. profits

D. assets

10. A ____________________ is owned by many investors in the form of stock.

Group of answer choices

A. privately held company

B. sole proprietorship

C. closed corporation

D. public company