Which of the Following Statements About Listing on a Stock

question 10

Multiple Choice

Which of the following statements about listing on a stock exchange is most CORRECT?

• A) Listing is a decision of more significance to a firm than going public.
• B) Any firm can be listed on the NYSE as long as it pays the listing fee.
• C) Listing provides a company with some "free" advertising, and it may enhance the firm's prestige and help it do more business.
• D) Listing reduces the reporting requirements for firms, because listed firms file reports with the exchange rather than with the SEC.
• E) The OTC is the second largest market for listed stock, and it is exceeded only by the NYSE.

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Definitions:

General Ledger

The master accounting document that contains all the financial accounts and transactions of a company.

Unadjusted Trial Balance

A preliminary list of all accounts and their balances before any adjustments are made, used to check the accuracy of debits and credits in accounting records.

Accounting Cycle

The sequence of processes beginning with the recording of a transaction and ending with the posting to the financial statements, completed in each accounting period.

End-of-period Spreadsheet

A financial document used to summarize account balances and adjustments at the end of an accounting period, facilitating the preparation of financial statements.