Question

Accountants at Cerulean Corporation are busy preparing their quarterly report for the SEC, while accountants at Chartreuse Company are able to work on other projects. How do the two compare?

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 dividends this quarter, while Chartreuse Company retained all their earnings.
D. Cerulean Corporation is publicly held, while Chartreuse Company is privately held.

Answer 1

Cerulean Corporation accountants are busy with SEC quarterly reports because it is a publicly held company, while Chartreuse Company's accountants work on other projects because it is privately held.

Step-by-step explanation:

Regarding the difference between the accountants' activities at Cerulean Corporation and Chartreuse Company, it seems that this is linked to the nature of the companies rather than location-based reporting requirements or current corporate actions like litigation or dividend payments. Specifically, the accountants at Cerulean Corporation are busy preparing their quarterly report for the Securities and Exchange Commission (SEC), which is a requirement for publicly held companies. On the other hand, if Chartreuse Company accountants have more flexibility to work on other projects, it suggests that they are not bound by such rigorous reporting standards, which is typically the case for privately held companies. Thus, the correct comparison would be option D: Cerulean Corporation is publicly held, while Chartreuse Company is privately held.