The primary responsibility of security and exchange commissions with respect to financial statements is to
A. set generally accepted accounting principles (GAAP), which must be followed in their preparation.
B. review accounting choices made by companies in their financial statements to ensure decision-making logic is sound.
C. monitor financial statements to ensure full and plain disclosure of material information thus maintaining compliance with listing requirements.
D. monitor and analyze the information looking for signs of an improved or weakened financial condition.
Answer:C
The primary responsibility of security and exchange commissions with respect to financial statements is to
A. set generally accepted accounting principles (GAAP), which must be followed in their preparation. B. review accounting choices made by companies in their financial statements to ensure decision-making logic is sound. C. monitor financial statements to ensure full and plain disclosure of material information thus maintaining compliance with listing requirements. D. monitor and analyze the information looking for signs of an improved or weakened financial condition.