The Dollar Amount of the Common Stock on the Balance

question 8

Multiple Choice

The dollar amount of the common stock on the balance sheet of a corporation that has common stock with a par value is the number of shares:

• A) issued, multiplied by the amount received per share.
• B) outstanding, multiplied by the amount received per share.
• C) issued, multiplied by the par value per share.
• D)outstanding, multiplied by the par value per share.

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Definitions:

Note Receivable

A written promise that someone will pay a business a specific sum of money on a specified date or on demand.

Days' Sales in Receivables

A financial ratio that measures the average number of days that receivables remain outstanding before being collected.

Allowance for Doubtful Accounts

Allowance for doubtful accounts is a financial accounting provision made for receivables that may not be collectible, estimating the portion of outstanding receivables likely to be uncollectable.

Credit Balance

A situation where the amount of credits in an account exceeds the debits, often seen as a positive balance in financial and bank accounts.