Giving an Investor the Right to Buy Shares in the Issuing

question 99

Multiple Choice

Giving an investor the right to buy shares in the issuing company at a predetermined rate is termed:

• A)option.
• B)warrant.
• C)private placement.
• D)Consideration.

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Definitions:

Change In Accounting Principle

An adjustment made to the accounting methods used by a company, requiring retrospective restatement of prior financial statements to reflect the new principle.

Disclosure Rules

These are regulations requiring companies to provide full, fair, and timely Disclosure of financial statements and other significant information.

Comprehensive Income

Comprehensive income includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

GAAP

Generally Accepted Accounting Principles, a set of accounting standards and procedures used in the United States to prepare and present financial statements in a consistent manner.