The SEC is legally empowered to regulate accounting principles.

Question

Quizplus · Accepted Answer

The Securities and Exchange Commission (SEC) is legally authorized to regulate accounting principles. Under the Securities Exchange Act of 1934, the SEC has the power to establish accounting standards for publicly traded companies and require them to follow these standards in their financial reporting. Additionally, the SEC has the authority to investigate and bring enforcement actions against companies that violate accounting rules or commit fraud related to their financial reporting.

The SEC Is Legally Empowered to Regulate Accounting Principles