Argyle Designs Has a Contract to Design 20 New Dresses

question 40

True/False

Argyle Designs has a contract to design 20 new dresses for a customer, and will collect a total of $40 000 when the design services are complete. They start on 1 June. As of 30 June, Argyle has finished 4 of the 20 designs. They will make an adjusting entry at the end of June to accrue $10 000 of service revenue.

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Definitions:

Exempt Offering

A securities offering exempt from registration with the SEC, often under Regulation D.

Federal Securities Laws

Laws and regulations enacted by the federal government to regulate the sale and distribution of securities to protect investors from fraud.

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for regulating the securities industry, stock and options exchanges, and other electronic securities markets in the United States.

1934 Act

Refers to the Securities Exchange Act of 1934, which governs the trading of securities in the U.S., aiming to protect investors against malpractice.