A Firm Can Best Avoid the Time Lag Between Registering

question 98

Multiple Choice

A firm can best avoid the time lag between registering new securities with the SEC and actually selling them by

• A)use of proxy.
• B)shelf-registration.
• C)use of a margin call.
• D)use of preemptive rights.

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Definitions:

IFRS

A collection of accounting standards established by the International Accounting Standards Board, intended for worldwide application, known as International Financial Reporting Standards.

Cash-Basis Accounting

An accounting method where revenues and expenses are recorded when cash is received or paid, as opposed to when they are incurred.

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life to account for declines in value over time.

Wages

Amounts paid to employees based on a rate per hour or on a piecework basis.