LO 4.1 Which of the following is the federal, independent agency that provides oversight of public companies to maintain fair representation of company financial activities for investors to make informed decisions?Choose one answer from the options below.A. IRS (Internal Revenue Service)B. SEC (Securities and Exchange Commission)C. FASB (Financial Accounting Standards Board)D. FDIC (Federal Deposit Insurance Corporation)
Question
LO 4.1 Which of the following is the federal, independent agency that provides oversight of public companies to maintain fair representation of company financial activities for investors to make informed decisions?Choose one answer from the options below.A. IRS (Internal Revenue Service)B. SEC (Securities and Exchange Commission)C. FASB (Financial Accounting Standards Board)D. FDIC (Federal Deposit Insurance Corporation)
Solution
The correct answer is B. SEC (Seccurities and Exchange Commission). The SEC is the federal agency responsible for overseeing public companies and ensuring fair representation of company financial activities. This allows investors to make informed decisions. The other options, IRS, FASB, and FDIC, while important in the financial sector, do not have the same role as the SEC.
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