Accounting is the process of recording and summarizing the financial information of an organization systematically and communicates its financial information to the users of accounting information so that they can make decisions. Generally, the users of accounting information are management, owners, creditors and employees of the organization and state and local government who are concerned with tax matters.
There is a unit of government that is Securities and Exchange Commission (SEC) which is responsible for setting rules and regulations for the company to oversee the financial transactions and their securities in the market. It is the duty of SEC to ensure that all financial companies are complying with the specified rules and regulations.
Securities and Exchange Commission is responsible for ensuring that full disclosure is made by the company to investors in order to protect their interest.
Thus, this statement matches with
that is Securities and Exchange Commission.
This exercise provides an opportunity to gauge where the students are in terms of their prior background in accounting, be it practical or educational, and to clear up some of the common misconceptions (i.e., explain that accounting goes beyond the "how to" aspects of bookkeeping and involves the use of judgment).
Accounting refers to the art of classifying, recording, summarizing the financial data which starts from passing of journal entry, then posting into corresponding ledgers and finally preparation of financial statements which contains profit and loss account, balance sheet, and cash flow statements..
Entity refers to the various form of business organization. The entity can be an individual (in case of proprietorship) or a group of individuals (in case of companies, trusts).
The financial statements are prepared primarily for the entity of which accounting is done. The accounting services are performed for the purpose of the entity, which helps the managers to take strategic decisions for the benefit of the entity.
Hence, in the view of above mentioned facts, the given statement matches with the