Regulation a Is an Exemption from Filing with the SEC

question 7

True/False

Regulation A is an exemption from filing with the SEC for an IPO issue of less than $5 million; instead,it requires only a brief offering statement.

---

Definitions:

Revenue

Income derived from the core business activities of a company, specifically through selling products or services.

Net Income

The residual financial benefit a company holds after reducing total income by all expenditures and tax payments.

Owner's Drawings Account

An account that tracks the funds withdrawn by the owner from the company for personal use.

Closing Entry

Journal entries used to transfer temporary account balances to permanent accounts and to reset the balances of temporary accounts to zero at the end of each accounting period.