Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 52

Following are a number of the key terms and concepts introduced in the chapter, along with a list of corresponding definitions. Match the appropriate letter for the key term or concept to each definition provided (items 1–8). Note that not all key terms and concepts will be used.

a. Explanatory notes to financial statements	h. Prospectus
b. Five-year summary	i. Purchase accounting
c. Significant accounting policies	j. Corporate governance
d. Stock option plan	k. Contingencies and commitments
e. Accounting change	l. Business segment
f. Business combination	m. Management’s statement of responsibility
g. Proxy

_____A summary of the characteristics of a security being offered for sale, including a description of the business and financial position of the firm selling the security

Step 1 of 3

Public Offer

When the company decides to raise funds for their operations from the public, it is required to register itself with the regulatory body and then issue a legal document in the public informing prospective investors about the fundamentals of the company.