Rule 501 of Regulation D Expands the Categories of Accredited

question 28

Multiple Choice

Rule 501 of Regulation D expands the categories of accredited investors. Which is not one of the categories?

• A) any organization formed for the specific purpose of acquiring securities with assets in excess of $5 million
• B) any director or executive officer of the issuer of securities being sold
• C) any individual whose net worth exceeds $1 million
• D) any partnership
• E) any trust with total assets greater the $5 million

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Definitions:

Job Order Costing

A cost accounting method used to track the costs associated with a specific job or order, capturing direct labor, direct materials, and applied overhead.

Process Costing

A method of costing used mainly in manufacturing where costs are assigned to batches of products rather than individual items.

Job Cost Sheets

Records that detail the materials, labor, and overhead costs associated with a specific job.

Unit Cost Trends

The pattern or movement in the cost to produce one unit of a product over a specific period.