A Newly Created Design Business Called Smart Art Is Just

question 32

Multiple Choice

A newly created design business called Smart Art is just finishing up its first year of operations.During the year,there were credit sales of $40,000 and collections of $36,000.One account for $650 was written off.Smart Art uses the percent-of-sales method to account for uncollectible account expense,and has decided to use a factor of 2% for their year-end adjustment of uncollectible account expense.
-At the end of the year,what is the ending balance in the Allowance for uncollectible accounts?

• A) $150
• B) $800
• C) $250
• D) $1,450

Learn about the significance of record date, income stocks, and dividend payments to shareholders.

Understand the valuation and capitalization of stocks, including the distinction between large cap stocks and preferred stocks.

Grasp the fundamental and technical aspects influencing stock valuation and investment strategies.

Interpret the roles and functions of securities exchanges, investment banks, and financial orders in the trading process.

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Definitions:

Recession 1981-1982

The recession of 1981-1982 was a severe global economic downturn characterized by high inflation, interest rates, and unemployment, particularly impacting the United States.

Interest Rates

The cost of borrowing money or the return for investing money, typically expressed as a percentage of the principal amount.

Multiplier Effect

The proportional amount of increase in final income that results from an injection of spending.

Reserve Requirement

The minimum amount of reserves that banks must hold against deposits, as mandated by central banking authorities to ensure bank liquidity.