Effective internal control requires a department to purchase supplies on its own
Indicate whether the statement is true or false
False
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A customer's check for $1,270 was returned for nonsufficient funds. Which of the following journal entries is needed to adjust for the NSF check?
A) Accounts Receivable 1,270 Cash 1,270 B) Cash 1,270 Sales Revenue 1,270 C) NSF Check 1,270 Cash 1,270 D) Accounts Payable 1,270 Cash 1,270
Managing the firm's short-term financing activities is known as ________
A) capital budgeting B) capital structure C) accounts receivable management D) working capital management
The purpose of the "quiet period" a company must observe from the time it files a registration statement with the SEC until after an IPO is complete is to assure that all investors receive the same information
Indicate whether the statement is true or false.
Scissorwire Inc. sells shares of its stock to the public, with each share valued at $16. After a year, the company incurs a loss and the price of the stock drops to $5 per share. The company reveals that it had deliberately not registered with the SEC before going public and that it has no money to pay the investors. Which of the following is true in this situation?
A. Scissorwire Inc. can register with the SEC at any point after the decline in share price. B. The U.S. government can file a criminal lawsuit against Scissorwire Inc. to seek criminal penalties. C. The investors were negligent in failing to verify registration prior to stock purchase, and therefore cannot rescind their purchase. D. Scissorwire Inc. is liable for violation of the Securities Exchange Act of 1934.