Which Statement Is Incorrect

question 118

Multiple Choice

Which statement is incorrect?

• A) A chart of accounts is a listing of accounts used by a business.
• B) New accounts can be added to the chart of accounts.
• C) Stockholders' Equity is an account that is included in the chart of accounts.
• D) Account titles for the chart of accounts are used in general journal entries.

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Definitions:

1933 Act

The U.S. Securities Act of 1933, a federal law enacted as a result of the stock market crash of 1929, aimed at regulating the securities market and protecting investors.

Registration Statement

A set of documents, including a prospectus, filed with a regulatory body like the SEC by companies wishing to issue public shares.

Material Misstatements

False or inaccurate statements that are significant enough to impact an investor's or decision-maker's judgment.

SEC Rule 504

SEC Rule 504 of Regulation D allows certain small businesses to offer and sell up to $5 million of their securities in any 12-month period without having to register the securities with the SEC.