If an exchange lacks commercial substance and results in a gain, the gain must be deferred by reducing the cost of the asset
Indicate whether the statement is true or false
True
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For rescission to be available as a remedy for a false statement, a misrepresentation must have been made with scienter
a. True b. False Indicate whether the statement is true or false
A model that uses a system of symbols to represent a problem is called
a. mathematical. b. iconic. c. analog. d. constrained.
Answer the following statements true (T) or false (F)
1. Internal controls are put in place to keep the company on course toward achieving its goals. 2. Controls such as those to protect inventory should be put in place no matter what the cost. 3. The primary reason to evaluate internal control is to formulate constructive suggestions for improvement. 4. A clean audit is normally associated with weak controls. 5. The auditor's control risk assessment will affect the procedures to be included in the audit.
[Coffee Shops] Marley wants to open a chain of coffee shops but needs some investors. Her friend Marc tells her that she should be sure that she satisfies the requirements of the SEC. Marc tells her that she has to provide information to the SEC involving a description of the securities, an explanation of how proceeds will be used, information regarding the management of the company and other matters. He tells her that she also has to provide a document to the SEC that will be provided as an advertising tool to potential investors who can rely on it to decide whether they should buy the securities. Marley says that she does not want to do that. She explains to Marc that insofar as the coffee shop venture is concerned, she does not want to advertise, and she only wants to offer securities
to a limited number of wealthy friends. Particularly, she has her friend Annaliese in mind, who has a net worth of at least $3 million.Which of the following is the term for the document referenced by Marc to be provided to the SEC that will be used as an advertising tool to potential investors who can rely on it to decide whether they should buy securities? A. A proposed income statement B. An advertising statement C. An inventory D. A securities advertisement E. A prospectus