________ Are a Way for a Business to Raise Capital

question 48

Multiple Choice

________ are a way for a business to raise capital through federally registered and underwritten sales of shares in the company.

• A)Initial public stock offerings
• B)Venture capital funds
• C)Microloans from social entrepreneurs
• D)Dividends from employee stock
• E)Social capital networks

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of receivables that may not be collectible.

Contra Asset

An account on a company's balance sheet that reduces the total amount of an asset, such as accumulated depreciation.

Normal Balance

In accounting, the normal balance is the side (debit or credit) of an account that is usually increased. For example, asset accounts normally have a debit balance, while liabilities and equity accounts have a credit balance.

Direct Write-off Method

A method of accounting for bad debts that involves charging the amount of an uncollectible account directly to the expense account when it is deemed non-recoverable.