Readmore Bookstore Corporation Files a Registration Statement and Delivers a Prospectus

question 25

Multiple Choice

Readmore Bookstore Corporation files a registration statement and delivers a prospectus to the appropriate parties.These items are intended to enable the evaluation of certain financial risks by

• A)market professionals to explain to all investors.
• B)government regulators to disclose to the general public.
• C)sophisticated investors only.
• D)unsophisticated investors.

---

Definitions:

Journalize

The act of recording business transactions in the journal of an accounting system, marking the first step in the accounting cycle.

Normal Balance

The side (debit or credit) of an account that is typically increased; varies depending on the account type.

Debit

An accounting entry that increases an asset or expense account or decreases a liability or equity account.

Credit

In finance, it refers to the borrowing capacity of an individual or company, or the entry on the right side of a financial account, indicating an increase in liability or decrease in asset.