Question

221. The correct order from the smallest number of shares to the largest number of shares is:
     1. Issued, authorized, and outstanding.                     B) Authorized, issued, and outstanding.

C) Issued, outstanding, and authorized.                     D) Outstanding, issued, and authorized.

222. When I raise money for my business, I will be better off
     1. if I issue shares
     2. if I issue debt
     3. It depends how well the business does

223. Prior to year-end adjusting entries, what would explain the Allowance for Uncollectible Accounts having a debit balance?
     1. The amount of actual uncollectible accounts in the current year was less than the estimate of uncollectible accounts made at the end of the prior year.
     2. The amount of actual uncollectible accounts in the current year was greater than the estimate of uncollectible accounts made at the end of the prior year.
     3. The amount of credit sales in the current year was greater than the amount of credit sales made in the prior year.
     4. The amount of cash collections from customers in the current year was less the amount of cash collections from customers in the prior year.

224. In an installment loan
     1. later payments pay the same interest as earlier payments
     2. later payments pay more interest than earlier payments
     3. later payments pay less interest than earlier payments
     4. it depends on the interest rate

225. Which of the following must Debits equal Credits (more than one possible correct answer)

Adjusting Entries           B) Transaction Entries    C) Closing Entries

Answer 1

Ques 1
b.	Authorised issued and outstanding
always first we write what has been authorised
then what is issued
and the oustanding (issued-treasury stock)
Ques 2
c. it depends on how well business does
beacause if the company is not earning too much profit
it is better to go for equity as debt payments are to
be made regularly that will further decrease profits
if the company is doing really well debt options may
be cheaper than cost of issuing equity
Ques 3
b.	The amount of actual uncollectible accounts in the current year was greater than the estimate of uncollectible accounts made at the end of the prior year.
this happens when write offs are more the provision made
Ques 4
c. later payments pay less interest as earlier payments
this is because the principal components keeps
on reducing in the later years
ues 5
all of the above
when the entries are made
debits must equals credit