1. Which statement is CORRECT regarding the SEC?

It is authorized to oversee the functioning of U.S. capital markets.

It has issued a number of forms of guidance on accounting principles.

It has standards-setting authority over public companies.

All of these are correct.

2.

Which of the following is the basic formula for computing a taxpayers tax liability?

Tax Liability = Tax Base (1 Tax Rate)

Tax Liability = Tax Base Tax Rate

Tax Liability = Tax Base Tax Rate

None of these are correct

3.

A proportional tax rate system represents:

a progressive tax rate structure

the U.S. federal income tax system

a flat tax rate structure

none of these are correct