Flag Ltd Has Received Applications for 4 Million Shares During

question 34

Multiple Choice

Flag Ltd has received applications for 4 million shares during July 2004.The shares are to be issued at a price of $2.75 per share.The 4 million shares are allotted on 15 August 2004.What are the accounting entries required to record these events?

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Definitions:

Z Test

A statistical test used to determine if there is a significant difference between a sample mean and a population mean, assuming data is normally distributed.

Standard Error

Standard error measures the precision of a sample mean estimate of a population mean, indicating how much the sample mean is expected to fluctuate from the true population mean.

Population Average

The mean value of a given characteristic within an entire population.

Sample Mean

The average of all observations in a sample, calculated by summing the values and dividing by the sample size.