How has the SEC exercised its power with regard to the continuing evolution of accounting principles?

1.  Issuing Financial Reporting Releases (FRRs).

2.  Requiring additional disclosures in notes to financial statements.

3.  Declaring a moratorium on the use of specified accounting practices.

4.  Overruling the FASB.

A) 1 and 4.

B) 1, 3, and 4.

C) 1 and 3.

D) 1, 2, and 4.

E) 1, 2, 3, and 4.

Answer: E

Learning Objective: 12-04   

Topic: SEC authority over establishing GAAP

Difficulty: 1 Easy 

Blooms: Remember

AACSB: Reflective Thinking

AICPA: BB Legal

AICPA: FN Measurement