Utilities Inc

question 3

Multiple Choice

Utilities Inc.decided to go public by an initial public offering.It sold securities,some of which were bought by James Jefferson.Six months later,Mr.Jefferson sold the Utilities shares he had purchased to Martha Graham and Mark Franco.Two years later,Mr.Jefferson bought back the Utilities shares from Ms.Graham and Mr.Franco and made a profit out of both transactions.Identify the issuer in this scenario.

• A)Utilities Inc.
• B)James Jefferson
• C)Martha Graham
• D)Mark Franco

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Definitions:

Dishonored Note

A promissory note that has not been paid by the maker at its maturity date.

Calculating Interest

The process of determining the cost of borrowing money or the gain from lending money, usually expressed as a percentage of the principal amount per period.

Note Receivable

A written promise that one party will pay a specific sum of money to another party at a future date.

Journalize Transactions

The process of recording financial transactions in a company's accounting records or journal.