Why are some securities exempted from the registration provisions of the 1933 Act? Give two examples of such securities. Are they exempted from the antifraud provisions of the act as well?
What will be an ideal response?
Examples may vary. Some securities are exempted from the registration provisions of the 1933 Act either because (1) the character of the issuer makes registration unnecessary, (2) the issuance of such securities is subject to regulation under another statutory scheme, or (3) the purchasers of the securities can adequately protect themselves. The following are the most important securities exemptions: government-issued or -guaranteed securities; short-term notes and drafts; securities of nonprofit issuers; financial institution securities; ICC-regulated issuers; and insurance policies and annuity contracts. Although these securities are exempt from the registration provisions of the 1933 Act, they are not exempt from the antifraud provisions of the act.
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TKE Corporation established a defined benefit pension plan in 2016. TKE has provided the following information for the year ended December 31, 2018: Service cost$90,000 Interest cost$120,000 Actual return on plan assets$70,000 Expected return on plan assets$80,000 Amortization of prior service costs$30,000 If the company contributes $130,000 cash to the pension plan trustee, which one of the following journal entries properly records the payment?
A.
| DR Pension expense | 120,000 | ? |
| DR Pension asset | 10,000 | ? |
| CR Cash | ? | 130,000 |
B.
| DR Pension expense | 130,000 | ? |
| CR Cash | ? | 130,000 |
C.
| DR Pension expense | 160,000 | ? |
| CR Cash | ? | 130,000 |
| CR Pension asset (liability) | ? | 30,000 |
D.
| DR Pension expense | 90,000 | ? |
| DR Pension asset (liability) | 40,000 | ? |
| CR Cash | ? | 130,000 |
Which of the following should be added to net income in calculating net cash flow from operating activities usingthe indirect method?
a. a gain on the sale of land b. a decrease in accounts payable c. an increase in accrued liabilities d. dividends paid on common stock
When goods have been commingled, it is sometimes possible to get title by confusion
a. True b. False Indicate whether the statement is true or false
The difference between the contract price and the price a buyer must pay for replacement goods when a seller is in breach is called cover
a. True b. False Indicate whether the statement is true or false