Fact Pattern Fresh Fruits & Veggies,Inc. ,Wants to Make an Initial Public

question 11

Multiple Choice

Fact Pattern
Fresh Fruits & Veggies,Inc. ,wants to make an initial public offering of securities.Fresh believes that it qualifies for an exemption under Regulation A from the full registration requirement of the federal Securities Act of 1933.
-Refer to Fact Pattern 29-1A.If Fresh is exempt from the federal registration requirement,Fresh is

• A)automatically exempt from any state registration requirement.
• B)not subject to any state securities laws.
• C)not necessarily exempt under a state registration requirement.
• D)automatically subject to all state registration requirements.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, often expressed as an annual percentage of the principal.

Interest Payable

The amount of interest expense that has accrued but has not yet been paid by the company.

Accounts Payable

An accounting entry representing an entity's obligation to pay off a short-term debt to its creditors or suppliers.

Notes Payable

A liability on a balance sheet representing promissory notes that a company must pay in the future.