When a Public Share Issue Is Made, the Offer Comes

question 12

Multiple Choice

When a public share issue is made, the offer comes from:

• A) the company issuing the shares;
• B) the relevant oversight body once it has reviewed the prospectus documentation;
• C) the broker handing the share issue for the company;
• D) the applicant.

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Definitions:

Post-closing Trial Balance

A financial statement prepared after closing entries are made, listing only the balance sheet accounts with non-zero balances.

Ledger

A principal book or computer file for recording and totaling economic transactions measured in terms of a monetary unit of account by account type.

Income Summary

An account in the ledger used to summarize revenues and expenses for a specific period before transferring the net result to capital accounts.

Worksheet

A document or tool used by accountants to draft adjustments and test balances during the end-of-period reporting process, not part of the formal financial statements.