ADVANCED FINANCIAL ACCOUNTING IA
12th Edition
ISBN: 9781260545081
Author: Christensen
Publisher: MCG
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Chapter 14, Problem 14.6.4E
To determine
Introduction: Securities Act of 1933 which is passed in 1933 for security exchange works with the motive to secure the investors so that they can get financial and other important information related to securities issued in public sale and also to have a check on activities like fraud, misrepresentation, etc.Regulation A tier I regulation provides exemption from registration for public offering and issues and has two offerings i.e. Tier I and Tier II. Tier I offering allows up to $ 20million within a year while tier II allows up to $ 50million within a year.
To choose: The correct answer.
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Choose the correct. What is a registration statement?a. A statement that must be filed with the SEC before a company can begin an initial offering of securities to the public.b. A required filing with the SEC before a large amount of stock can be obtained by an inside party.c. An annual filing made with the SEC.d. A filing made by a company with the SEC to indicate that a significant change has occurred.
MC Qu. 41-05 Which of the following describes...
Which of the following describes a prospectus?
Multiple Choice
A prospectus is an oral promise that assures the buyer of the veracity of the information in the registration
statement.
A prospectus an advertising tool that issuers distribute to potential investors.
A prospectus is a document that describes the securities offered for sale and the SEC's approval of those securities.
A prospectus is a collection of all of the company's financial documents.
APR
27
A
AW
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X
What is a registration statement?a. A statement that must be filed with the SEC before a company can begin an initial offering of securities to the public.b. A required filing with the SEC before a large amount of stock can be obtained by an inside party.c. An annual filing made with the SEC.d. A filing made by a company with the SEC to indicate that a significant change has occurred.
Chapter 14 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
Ch. 14 - Prob. 14.1QCh. 14 - Prob. 14.2QCh. 14 - Prob. 14.3QCh. 14 - Prob. 14.4QCh. 14 - Prob. 14.5QCh. 14 - Prob. 14.6QCh. 14 - Prob. 14.7QCh. 14 - Prob. 14.8QCh. 14 - Prob. 14.9QCh. 14 - Prob. 14.10Q
Ch. 14 - What type of items that specially involve the...Ch. 14 - Prob. 14.12QCh. 14 - Prob. 14.13QCh. 14 - What types of information must be disclosed in the...Ch. 14 - Prob. 14.15QCh. 14 - Prob. 14.1CCh. 14 - Prob. 14.7CCh. 14 - Prob. 14.8CCh. 14 - Prob. 14.1.1ECh. 14 - Prob. 14.1.2ECh. 14 - Organization Structure and Regulatory Authority of...Ch. 14 - Prob. 14.1.4ECh. 14 - Prob. 14.1.5ECh. 14 - Prob. 14.1.6ECh. 14 - Prob. 14.2.1ECh. 14 - Prob. 14.2.2ECh. 14 - Prob. 14.2.3ECh. 14 - Prob. 14.3.1ECh. 14 - Prob. 14.3.2ECh. 14 - Prob. 14.3.3ECh. 14 - Prob. 14.3.4ECh. 14 - Prob. 14.3.5ECh. 14 - Prob. 14.3.6ECh. 14 - Prob. 14.3.7ECh. 14 - Prob. 14.4.1ECh. 14 - Prob. 14.4.2ECh. 14 - Prob. 14.4.3ECh. 14 - Prob. 14.4.4ECh. 14 - Prob. 14.6.1ECh. 14 - Prob. 14.6.2ECh. 14 - Prob. 14.6.3ECh. 14 - Prob. 14.6.4ECh. 14 - Prob. 14.6.5ECh. 14 - Prob. 14.6.6E
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- Choose the correct. Which of the following is not exempt from registration with the SEC under the Securities Act of 1933?a. Securities issued by a nonprofit religious organization.b. Securities issued by a government unit.c. A public offering of $40 million to unaccredited investors under Regulation A.d. An offering to 40 sophisticated investors.arrow_forward1.In accordance with CFA standard V(B), in preparing a research report involving securities, the members and candidates must:A.present the basis characteristics(general principles of the investment of the investment process used-such as risk and return related issues) B.Include all factors that are relevant including any significant limitations and risks associated with the investment and/or decision-making process. C.All the options listed. D.Provide regular updates to any important changes to the securities(prices, risks.etc) 2. In accordance with CFA standard VI(A), a member must: A.Disclose all actual and perceived conflicts of interest when it is convenient to ensure no loss of income. B.Use their professional judgement and disclose conflicts of interest if the monetary value exceeds 300. C.Disclose all actual and perceived conflicts of interest before assisting the client or employer. D.Use their professional judgement and only disclose actual conflicts of interest.arrow_forwardWhich of the following is not exempt from registration with the SEC under the Securities Act of 1933?a. Securities issued by a nonprofit religious organization.b. Securities issued by a government unit.c. A public offering of $40 million to unaccredited investors under Regulation A.d. An offering to 40 sophisticated investors.arrow_forward
- 7. According to the 1934 Securities Act, select ALL who must certify the quarterly and annual financial statements for a company. a. The chief executive officer of the company b. An external auditor hired by the company c. The chief financial officer of the company С. d. A representative of the Securities and Exchange Commission (SEC) 8. Select ALL of the following that are required in a proxy statement. a. How the proxy materials will be sent b. How much is expected to be spent on the solicitation c. Who the shareholders for the proxy are Od. Who is soliciting the proxyarrow_forwardThe Securities Exchange Act of 1934a. Regulates the public trading of previously issued securities through brokers and exchanges.b. Prohibits blue sky laws.c. Regulates the initial offering of securities by a company.d. Requires the registration of investment advisers.arrow_forwardSection 11(b) of the Securities Act of 1933 provides that individuals can be sued and maybe liable for investors’ losses in connection with a public securities offering under which ofthese circumstances?a. The chairman of the board of directors performed a reasonable investigation of facts inconnection with preparing the section in the registration statement concerning the specification of the use of the proceeds of the offering.b. A consulting engineer performed a reasonable investigation and reported in the registration statement on the feasibility of construction of a roadway to be financed with theoffering proceeds.c. The president of the issuing entity had no reason to doubt the report of the consultingengineer, although the president did not perform a separate reasonable investigation ofher own.d. The officers of the issuing entity were relieved that the independent auditors did notmake an issue about the excessive valuation of inventory held to support construction inprogressarrow_forward
- . The issuing of security goes through a number of processes. Once the SEC has commented on the registration statement and a preliminary prospectus has been distributed to interested investors, the investment bankers organize road shows and undertake book building in the process. Required: Explain the meaning and two (2) purposes of road shows as used in the preamble above. 2921 0 2arrow_forwardRegulation S-K: Multiple Choice Controls the listing of securities by stock exchanges. Established requirements for nonfinancial information to be filed with the SEC. Prescribes the form of financial statements to be filed with the SEC. Describes the internal controls a publicly traded company must maintain. Prescribes the financial disclosure information that must be included in filings with the SEC.arrow_forwardAssume you are working in public accounting and the client you are assisting has a question on the appropriate guidance regarding the how to determine the number of periods to amortize a bond discount. What section in the codification would be appropriate to search for guidance on this issue? Question 22 options: a) Initial Measurement b) Subsequent Measurement c) Recognition d) Other Presentation Mattersarrow_forward
- The issue of security througha number of processes .once the SEC has commented to interest on the registration statement and a preliminary prospectus has been distributed to interest invetors,the investment bankers organizeroad shows and undertake book building in the process. Required: Explain the meaning and two [2]purposes of road showa as used in the preamble above.arrow_forward20- Which of the following Institutions are compensated via commission after the transaction has been successfully completed for buying or selling securities? a. Brokerages b. Investment Company c. Insurance Companies d. Savings and Loans Associationarrow_forwardChoose the correct. Which of the following statements is true for a foreign company registered with the U.S. SEC to list its stock on the New York Stock Exchange?a. The company must file an annual report with the SEC that is prepared in accordance with U.S. GAAP.b. The company may file an annual report with the SEC that is prepared in accordance with IFRS but must also provide a reconciliation of IFRS to U.S. GAAP.c. The company must file an annual report with the SEC that is prepared in accordance with IFRS but must also provide a reconciliation of IFRS to U.S. GAAP.d. The company may file an annual report with the SEC that is prepared in accordance with IFRS but need not also provide a reconciliation of IFRS to U.S. GAAP.arrow_forward
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