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B1-3 Supply of Financial Reporting The SEC has governmental authority over the capital markets, securities...

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B1-3 Supply of Financial Reporting The SEC has governmental authority over the capital markets, securities 1.2 trading, and accounting standards and financial reporting. But the SEC does not typically set the accounting principles that it mandates must be followed by U.S. companies that are listed on stock exchanges. Who does set those standards? And how does the SEC exercise its authority? Required: Provide a brief explanation

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