Comparing Accountants at Cerulean Corporation and Chartreuse Company
How do the accountants at Cerulean Corporation and Chartreuse Company compare?
Select the answer from the options below:
a. Cerulean Corporation is chartered in a state that requires reports, while Chartreuse Company is chartered in a state that does not.
b. Cerulean Corporation is undergoing litigation, while Chartreuse Company is not.
c. Cerulean Corporation paid dividend this quarter, while Chartreuse Company retained all their earnings.
d. Cerulean Corporation is publicly held, while Chartreuse Company is privately held.
Final answer:
The accountants at Cerulean Corporation are busy preparing their quarterly report for the SEC, while the accountants at Chartreuse Company are able to work on other projects.
Explanation:
The correct answer is d. Cerulean Corporation is publicly held, while Chartreuse Company is privately held.
Publicly held companies, like Cerulean Corporation, are required to prepare and file regular reports with the Securities and Exchange Commission (SEC) to provide transparency to their shareholders and the public. This can be time-consuming for their accountants as they need to ensure that the reports are accurate and in compliance with SEC regulations.
On the other hand, privately held companies, like Chartreuse Company, do not have the same reporting requirements to the SEC. Therefore, their accountants have more flexibility and can work on other projects instead of focusing solely on SEC filings.