Flo-Thru Corporation Is Poised to Issue Securities That, Under the Securities

question 46

Multiple Choice

Flo-Thru Corporation is poised to issue securities that, under the Securities Act of 1933, are "exempt." This means that the securities can be sold

• A) on the basis of a material omission or misrepresentation.
• B) on the basis of nonpublic information.
• C) within any six-month period by certain insiders.
• D) without being registered.

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Definitions:

Lease Contract

is an agreement wherein one party allows another to use an asset, such as property or equipment, for a specified period in exchange for payment.

Banker

A professional in the banking industry who deals with the management, operation, and provision of banking services to consumers and businesses.

Contra Asset Account

This is an account used in financial accounting to offset the balance of a related asset account, increasing the overall accuracy of the company's financial statement.

Accumulated Depreciation

The sum of all depreciation expenses allocated for a physical asset from the time it was first utilized.