The SEC requires disclosure if fixed charges exceed earnings.

Name: The SEC requires disclosure if fixed charges exceed earnings.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The Securities and Exchange Commission (SEC) requires companies to disclose if their fixed charges exceed their earnings in order to inform investors about the financial health and risk of the company. This disclosure is made in the company's financial statements and various reports filed with the SEC.

The SEC Requires Disclosure If Fixed Charges Exceed Earnings