Which statement best describes a publicly accountable enterprise?
A)An entity that has not issued debt instruments that are outstanding and traded in a public market.
B)An entity that holds assets in a fiduciary capacity for a broad group of outsiders as one of its primary businesses.
C)An entity that has not issued equity instruments that are outstanding and traded in a public market.
D)An entity that holds assets in a legal capacity for a broad group of outsiders as one of its primary businesses.

Question

Quizplus · Accepted Answer

A publicly accountable enterprise is defined as an entity that holds assets in a fiduciary capacity for a broad group of outsiders as one of its primary businesses. This includes entities such as banks, insurance companies, and investment funds.

Which Statement Best Describes a Publicly Accountable Enterprise