1.Authorized shares of stock are:

a. the maximum number of shares the corporation charter allows a corporation to issue

b. shares of stock that have been sold but may or may not be held by the stockholders

c. shares of stock that have been sold and arebeing held by the stockholders (not the corporation)

d. the stockholders who are authorized to bind the corporation in a contract

2.referred stock. On August 21 we issued 3,000 shares for $55 per share. What account(s) and amount(s) would we credit when we record the journal entry for this transaction?

a. cash, $165,000

b. preferred stock, $150,000; and paid in capital in excess of par value, $15,000

c. preferred stock, $500,000; and paid in capital in excess of par value, $50,000

d. preferred stock, $165,000

3.During the year, we made a payment of long-term notes payable of $20,000 and borrowed $45,000 on a long-term note payable. Which of the following is correct for our statement of cash flows?

a. Net cash used for financing activities is ($25,000).

b. Net cash provided by investing activities is $25,000.

c. Net cash provided by financing activities is $25,000.

d. Net cash used forfinancing activities is ($45,000).

4.On the statement of cash flows, an increase in accounts receivable is shown as:

a. a deduction from net income in the cash flows from operating activities section

b. an addition to net income in the cash flows from operating activities section

c. a cash inflow in the cash flows from investing activities section

d. a cash outflow in the cash flows from investing activities section