As Part of the Registration Statement, the Preliminary Prospectus Circulates

question 39

Multiple Choice

As part of the registration statement, the preliminary prospectus circulates to investors before the stock is offered. This preliminary prospectus is also called a(n) ________.

• A) IPO filing
• B) 10-K filing
• C) blue whale
• D) red herring

---

Definitions:

Adjusted Trial Balance

A list of all accounts and their final balances after adjusting entries have been made, used to prepare financial statements.

Unadjusted Trial Balance

A financial document listing all the accounts and their balances at a particular date, before any adjustments are made.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, or obsolescence.

Accrued Revenues

Revenues earned in an accounting period that have not yet been received in cash or recorded at the statement date.