When a Corporation Sells Some of Its Own Common Shares

question 140

Multiple Choice

When a corporation sells some of its own common shares, all on credit, there should be a debit to the account:

• A)Notes receivable, common.
• B)Accounts receivable.
• C)Cash.
• D)Subscriptions receivable, common.

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Definitions:

Price Elasticity

An indicator of the extent to which demand for a product reacts to alterations in its price, showing the degree of consumer sensitivity to price fluctuations.

Price-elastic

Describes a situation where the demand for a product is sensitive to price changes.

Home Entertainment System

An array of electronic devices set up in a home to reproduce the experience of watching movies or listening to music in a theater-like setting.

Quaker State Oil

A brand known for producing motor oil and other automotive lubricants and products, with a long history in the United States.