Under SEC Rules, a "Private Company" Is a Company

question 336

Multiple Choice

Under SEC rules, a "private company" is a company:

• A) with all its securities held by investment firms
• B) with no more than 1,000 shareholders and shares not traded openly
• C) that does not allow foreign investors to own its stock
• D) with financial assets belonging only mutual funds
• E) none of the other choices

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Definitions:

Posting Process

The accounting procedure of transferring journal entry information to the ledger to update account balances.

General Ledger

The General Ledger is a complete record of all financial transactions over the life of a company, organized by accounts.

Sales Journal

is a specialized accounting journal used to record all sales transactions of a business on credit.

Merchandise

Goods or products that are bought and sold by businesses.