Refer to Fact Pattern 21-2

question 21

Multiple Choice

Refer to Fact Pattern 21-2. Under the Securities Exchange Act of 1934, Giselle is most likely

• A)liable for insider trading.
• B)not liable because Giselle did not prevent others from profiting.
• C)not liable because Giselle did not solicit information from Eddie.
• D)not liable because Giselle does not work for Fresh Dairy.Fact Pattern 21-1 Drilling Tools, Inc., wants to make an initial public offering of securi-ties.Drilling Tools believes that it qualifies for an exemption under Regulation A from the full registration requirement of the federal Securities Act of 1933.

Apply and differentiate various depreciation methods, including straight-line, declining balance, and units-of-production.

Evaluate the efficient use of assets in generating sales through metrics like total asset turnover.

Understand the principles of proper cost allocation for property acquisition and improvements.

Grasp the concepts and applications of various depreciation methods.

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Definitions:

Adjusting Entry

An accounting entry made into a journal at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Property Tax

A tax assessed on real estate by the local government and based on the property's value.

Adjusting Journal Entry

A journal record used to adjust the balances in various ledger accounts to more accurately reflect income and expenses for the period.

Supplies Account

An account that tracks the cost of supplies not yet used by a business.