Chapter 14, Problem 14.3.2E

To determine

Introduction:Two major regulations, S-X and S-K, govern the preparation of financial statements and associated disclosures made in reports to the SEC. Specifically, Regulation S-X presents the rules for preparing financial statements, footnotes and the auditor’s report. Regulation S-K covers all nonfinancial items, such as management’s discussion and analysis of the company’s operations and financial position.

To choose:The correct answer to determine the disclosure requirements addressed in Regulation S-X.