The Securities and Exchange Commission is an accounting information user with an indirect financial interest in a business.

Question

Quizplus · Accepted Answer

The Securities and Exchange Commission (SEC) is a regulatory agency that oversees the securities industry, including public companies. As a regulatory agency, the SEC has an indirect financial interest in the businesses that it regulates. The SEC uses accounting information in carrying out its regulatory duties, such as reviewing financial statements and disclosures filed by public companies. Therefore, the statement that the SEC is an accounting information user with an indirect financial interest in a business is true.

The Securities and Exchange Commission Is an Accounting Information User