Which of the Following Statements Is FALSE

question 1

Multiple Choice

Which of the following statements is FALSE?

• A)The decision to raise financing externally usually implies that a firm plans to pursue an investment opportunity.
• B)Researchers have found that, on average, the market greets the news of an SEO with a price increase.
• C)Although not as costly as IPOs, seasoned offerings are still expensive.
• D)SEO rights offers have lower costs than cash offers.

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Definitions:

Permanent Accounts

Balance sheet accounts that carry their ending balances into the next accounting period, including assets, liabilities, and equity accounts.

Closing Entry Process

The procedure at the end of an accounting period to prepare the accounts for the next period by clearing out revenues and expenses into the Retained Earnings account.

Temporary Accounts

Accounts used to collect information during a single accounting period, which are then transferred to permanent accounts at the end of the period.