Which of the Following Is an Example of a Material

question 37

Multiple Choice

Which of the following is an example of a material omission or misrepresentation during a securities transaction under Section 10(b) and Rule 10(b) (5) ?

• A) A change in the status of litigation against the company.
• B) A change in dividends.
• C) A new product, process, or discovery.
• D) A change in the status of litigation against the company; a change in dividends; and a new product, process, or discovery.
• E) A change in the status of litigation against the company and a change in dividends; but not a new product, process or discovery.

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Definitions:

Indirect Method

A method used in the preparation of cash flow statements which adjusts net income for transactions that affect reported net income but did not involve cash.

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered or used but not yet paid for.

Accounts Payable

Liabilities or money owed to suppliers or creditors for goods and services received but not yet paid for.

Indirect Method

An approach used in cash flow statements to adjust net income for the effects of non-cash transactions to compute cash flow from operating activities.