Nexis Corp

question 144

Multiple Choice

Nexis Corp. issues 1,000 shares of $15 par value common stock at $22 per share. When the transaction is recorded, credit(s) are made to:

• A) Common Stock, $15,000, and Paid-In Capital in Excess of Par, $7,000
• B) Common Stock, $22,000, and Retained Earnings, $15,000
• C) Common Stock, $7,000, and Paid-In Capital in Excess of Stated Value, $15,000
• D) Common Stock, $22,000

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Definitions:

Cash Only Credit Policy

A credit policy where a company does not extend credit and only accepts cash payments.

Net 30 Policy

A payment term used in business transactions that requires payment to be made in full within 30 days of the invoice date.

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers.