The POP System Allows Firms To

question 90

Multiple Choice

The POP system allows firms to:

• A)purchase securities for up to two years without registration.
• B)incur only short time delays in selling securities.
• C)wait for two years before paying for securities.
• D)offer rights issues to non-existing shareholders.

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Definitions:

Voucher System

An internal control system designed to control a company’s cash payments.

Stock Certificate

Formal document issued to investors in a corporation that shows the number of shares purchased.

Voucher System

A method of accounting in which each transaction is recorded through the use of a document, or voucher, ensuring expenditures are authorized and recorded accurately.

Paid Voucher File

Holds paid vouchers filed either in sequential order by voucher number or alphabetically by creditor’s name.