The Securities and Exchange Commission Requires That Subscriptions Receivable Be

question 51

Multiple Choice

The Securities and Exchange Commission requires that Subscriptions Receivable be disclosed on the financial statements filed with it as a(n)

• A)current asset as long as collection is to be made within one year or the normal operating cycle, whichever is longer
• B)other asset if collection is to be made beyond one year from the date of the financial statements
• C)contra-accounts receivable account
• D)contra-stockholders' equity account

---

Definitions:

Audit Standards

Guidelines and procedures set by governing bodies that dictate how financial audits should be performed, ensuring consistency, reliability, and accuracy of financial reporting.

Sophisticated Investor

An investor with significant experience and knowledge, making them capable of evaluating risks and opportunities in complex investments.

Financial Matters

Issues, decisions, and activities related to the management of money and financial instruments.

Net Worth

The total value of an individual’s or organization’s assets minus liabilities; a measure of financial health.