Question

select all that apply
which of the following characteristics describe the securities and exchange commission (sec)? (select all that apply.)
□ it reviews the financial statements of public companies for compliance with gaap.
□ it lacks the legal power to enforce its rules and decisions.
□ it works closely with the fasb in establishing gaap.
□ it is a private - sector entity rather than a public - sector or governmental entity.

Explanation:

The SEC reviews public - company financial statements for GAAP compliance and works with FASB on GAAP. It has legal enforcement power and is a governmental entity.

Answer:

It reviews the financial statements of public companies for compliance with GAAP.
It works closely with the FASB in establishing GAAP.