Q1. Which of the following best describe the SEC?
a) A.U.S. government organization that oversees and regulates the financial reporting of companies and securities traded in public markets
b) An independent organization responsible for establishing the standards for financial accounting and reporting in the U.S.
c) A.U.S. government organization that oversees and regulates financial reporting for private companies and companies with securities traded in public markets.
d) An independent organization responsible for ensuring the reliability of financial accounting information
Question 2:
From the perspective of capital markets, in which ways do stock analysis use financial accounting information?
a) to determine the ability of the firm to raise new capital
b) to communicate to investors current earnings and per-share stock prices of a firm
c) to communicate their expectations to investors regarding future earnings and per-share-stock
d) to determine the book value and per-share book value of common stock