The terms on an invoice are 4/15, n/30 . This means that
a. a discount of 4 will be allowed if payment is made within 15 days from the date of the invoice.
b. a discount of 15 will be allowed if payment is made with 4 days from the date of the invoice.
c. a discount of 4 will be allowed if payment is made by the 15th of the month.
d. a discount of 15 will be allowed if payment is made by the 4th day after the date of the invoice.
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Q. 2) Team Shirts issued a 10 stock dividend. The balance in retained earnings just before the dividend was 45,000. There were 15,000 shares outstanding on the day of the dividend.
The 1 par value stock had a market price of 17.25 on the day of the dividend. Total shareholders' equity will increase (decrease) by ________.
A) 4,500
B) 1,500
C) 25,875
D) 0
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Q. 3) At the end of a period (before adjustment), Allowance for Doubtful Accounts has a credit balance of 250 . Thenet credit sales for the period total 500,000 . If the company estimates uncollectible accounts expense at 1 of netcredit sales, the amount of bad debt expense to be recorded in an adjusting entry is 4,750.
a. True
b. False
Indicate whether the statement is true or false
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Q. 4) Adjusting entries always affect at least one balance sheet and one income statement account.
Indicate whether the statement is true or false
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Q. 5) Which of the following control plans is not directed primarily at the control goal of input accuracy?
a. document design
b. written approvals
c. preformatted screens
d. online prompting
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Q. 6) What is preferred stock?
What will be an ideal response?
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