Which of the following is a true statement?
A)The SEC initially required the accounting profession to consult with it before setting any specific accounting principles.
B)The SEC was created by Congress to oversee the accounting profession.
C)The SEC was given authority to prescribe the form and content of financial information filed with the SEC.
D)The SEC formed the Committee on Accounting Procedure to develop a comprehensive set of accounting principles.

Question

Quizplus · Accepted Answer

The SEC was given the authority to prescribe the form and content of financial information filed with it, as per the Securities Act of 1933 and the Securities Exchange Act of 1934. Option A is incorrect as the SEC did not require the accounting profession to consult with it before setting any specific accounting principles. Option B is also incorrect as the SEC was created by Congress to regulate the securities market and protect investors, not oversee the accounting profession. Option D is incorrect as the Committee on Accounting Procedure was formed by the American Institute of Certified Public Accountants (AICPA), not the SEC.

Which of the Following Is a True Statement