If Valley Corporation Issues 2,000 Common Shares for $140,000, Which

question 81

Multiple Choice

If Valley Corporation issues 2,000 common shares for $140,000, which account will be credited?

• A)Common Shares
• B)Retained Earnings
• C)Contributed Capital
• D)Cash

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Definitions:

Accounts Receivable Turnover

A financial ratio indicating how many times a company's receivables are turned over during a period.

Specific Accounts

Refers to accounts designated for specific purposes or transactions, distinguishing them from general or combined accounts.

Uncollectible

Refers to accounts receivable that a company has deemed to be uncollectable and is likely to write off as a bad debt.

Direct Write-off Method

A method of accounting for bad debts in which companies write off receivables when they determine they are uncollectible.