A Company Must File a Registration Statement with the SEC

question 59

Multiple Choice

A company must file a registration statement with the SEC providing various financial and company history information. The registration statement does not need to be filed if:

• A) the issue is less than $50 million.
• B) the loan matures within 9 months.
• C) the issue is less than $5.0 million.
• D) Both the issue is less than $50 million and the loan matures within 9 months.
• E) Both the loan matures within 9 months and the issue is less than $5.0 million.

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Definitions:

Contribution Approach

An accounting method where all variable costs are subtracted from sales to find the contribution margin, which is then used to cover fixed costs and profits.

Cost Formula

An equation used to predict costs, often relating total costs to the level of activity or volume of output.

Selling

The process of promoting and exchanging goods or services for money.

Administrative Expenses

Administrative Expenses are costs related to the general operations and administration of a business that are not linked directly to the manufacturing or selling of products or services.