A Method of Registering Securities That Allows Firms That Plan

question 6

Multiple Choice

A method of registering securities that allows firms that plan to offer multiple issues of the security over a two-year period to submit one registration statement is known as:

• A)shelf registration.
• B)shelf prospectus.
• C)SEC registration.
• D)originating registration.

---

Definitions:

Accrued Taxes Payable

Taxes that have been incurred but not yet paid, recorded as a liability on the company's balance sheet.

Current Liability

A financial obligation or debt that is due within one year or within the normal operating cycle of a business.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of the company’s financial condition.

Current Assets

Current assets are resources that a company expects to convert into cash or use up within one year, including cash, inventory, and receivables.