Which of the Following Statements Is Correct

question 80

Multiple Choice

Which of the following statements is correct?

• A)NASDAQ is an important stock exchange in the United States.
• B)The Standard & Poor's 500 Index and the New York Stock Exchange are two examples of stock indexes.
• C)The most significant influence on the demand for a corporation's stock is the number of shares of the stock that the corporation has issued.
• D)All of the above are correct.

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Definitions:

Credit Sales

Sales transactions where the payment is delayed as opposed to immediate cash payment, generating accounts receivable.

Adjusting Entry

An accounting journal entry made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Allowance for Doubtful Accounts

A contra asset account that represents an estimate of the amount of accounts receivable that may not be collectible.

Uncollectible Accounts

Accounts receivable that a company has deemed unlikely to be collected and thus written off as a loss.