Under the Securities Act of 1933, Accountants Who Assist in the Preparation

question 3

Multiple Choice

Under the Securities Act of 1933, accountants who assist in the preparation of the registration statement are civilly liable if the registration statement:

• A) Contains untrue statements of material fact
• B) Omits material facts required by statute or regulation
• C) Omits information that if not given makes the facts stated misleading
• D) All of the above

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Definitions:

FOH Volume Variance

A measure of the difference between the budgeted and actual overhead costs, attributable to changes in the volume of production.

FOH Budget Variance

The difference between the actual factory overhead costs incurred and the overhead costs budgeted for a specific period.

Cost of Goods Sold

The total cost directly associated with producing the goods sold by a company, including materials and labor.

PP&E (Net)

The net value of a company's Property, Plant, and Equipment after accounting for depreciation and amortization, representing the tangible assets used in operations.