Question

On a registration statement, the balance sheet must be created within _____ days prior to the filing of the registration statement.

A) 60 days
B) 75 days
C) 90 days
D) 120 days

Answer 1

The correct answer is option c. A balance sheet for a registration statement must generally be created within 90 days prior to the filing. This ensures that investors have current financial information about a company's assets, liabilities, and capital.

Step-by-step explanation:

When referring to the timing for creating a balance sheet in preparation for a registration statement, the U.S. Securities and Exchange Commission (SEC) requires that the financial statements must be as recent as practicable, but they're generally expected within 90 days prior to the filing of the registration statement. This allows investors to have the most up-to-date financial information possible when considering an investment.

A balance sheet is a financial statement that provides a snapshot of a company's financial condition and includes details on its assets, liabilities, and bank capital at a specific point in time. It plays a key role in bank regulation and helps prevent situations like a bank run or a company going bankrupt by providing transparent information about financial stability.