5. Which of the following statements about the Securities and Exchange Commission (SEC) is false?
a. Congress established the SEC to deter abusive accounting and financial reporting practices that contributed to the 1929 stock market collapse.
b. Entities that sell their securities on an interstate basis are known as “publicly owned entities.”
c. The SEC closely monitors the accounting profession’s rule-making processes and has the authority to override any new rules issued by the FASB to the extent that those rules apply to publicly owned entities.
d. The SEC ensures that publicly owned companies provide third parties with sufficient information to make informed economic decisions regarding the securities these firms sell.
e. The SEC assesses the investment quality of securities issued by the companies that it regulates and prohibits the sale of highly speculative securities.

6. Which of the following statements about property, plant, and equipment and depreciation is true?
a. Plant, property, and equipment assets are sold to customers in the normal course of business.
b. Accounting requires that the cost of a depreciable asset be recorded as an expense over time periods benefited by that asset.
c. Accumulated depreciation is the total amount of depreciation that has been recorded on a depreciable asset in the current period.
d. Accounting and general usages of the term depreciation are the same.
e. Land is a depreciable asset.

8. On January 1, 2002, Strauss Department Store purchased five sweaters from Charter Manufacturers for $20 each. On April 1, 2002, Ms. Landers purchased those sweaters from Strauss for $35 each. Strauss should recognize a
a. $75 increase in revenue for the sale of the sweaters to Ms. Landers.
b. $100 increase in revenue for the sale of the sweaters to Ms. Landers.
c. $75 increase in cost of goods sold for the sale of sweaters to Ms. Landers.
d. $100 increase in cost of goods sold for its sale of sweaters to Ms. Landers.
e. $175 increase in cost of goods sold for its sale of sweaters to Ms. Landers.

9. The requirement for publicly owned companies to issue quarterly and annual financial statements was mandated by the
a. Securities and Exchange Commission.
b. Financial Accounting Standards Board.
c. New York Stock Exchange.
d. Internal Revenue Service.
e. American Institute of CPAs.

10. The belief that an entity will continue to operate, unless there is evidence to the contrary, is the
a. accounting period concept.
b. historical cost principle.
c. unit of measurement concept.
d. going concern assumption.
e. revenue recognition rule.

CaptainForest

6) B
8) D
9) I would guess the answer is A, by the SEC
10) D