Which One of the Following Statements Is Incorrect Concerning Private

question 79

Multiple Choice

Which one of the following statements is incorrect concerning private placements?

• A) Terms of the financing can be custom-tailored.
• B) The securities are not made available to the public.
• C) The securities are often less marketable.
• D) Only a small amount of corporate debt is financed in this manner.

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Definitions:

Income Summary

An accounting tool used to aggregate all income and expense accounts to determine net income or loss for a period.

Revenue

Income that a company receives from its normal business activities, usually from the sale of goods and services to customers.

Closing Entries

Closing entries are journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, thereby resetting the temporary accounts for the next period.

Withdrawal Account

An account that tracks the money taken out of a business by its owners for personal use.