Which of the following has been a negative effect of the SEC requirement that publicly traded companies in the United States are required to file quarterly and annual reports that are audited by an independent, accredited accounting firm?
a.
Stockholders can have complete faith that the information contained in financial statements accurately reflects the state of affairs of a company.
b.
It has encouraged other developed nations to enact similar regulations and requirements.
c.
There have been issues of misrepresentation of the true financial state of companies to investors such as inflating the revenues or earnings to generate higher stock prices to give managers the benefits of stock option grants for personal gain at the expense of stockholders.
d.
The information can enable a stockholder to calculate the profitability (ROIC) of a company in which he or she invests.
e.
It gives consistent, detailed, and accurate information about how efficiently and effectively the agents of stockholders, the managers, are running the company.

Respuesta :

Statement C had a negative effect on the SEC requirement that publicly traded companies in the United States.

The U.S. Securities and Exchange Commission (SEC) is an independent federal agency responsible for protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation. The SEC's mission is to “protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.”

There have been issues of misrepresentation of the true financial state of companies to investors such as inflating the revenues or earnings to generate higher stock prices to give managers the benefits of stock option grants for personal gain at the expense of stockholders.

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