Which of the following is correct regarding a two-for-one stock split?
A) The purpose of the split may be to increase the number of potential stockholders.
B) The purpose of the split is to make a distribution to the stockholders.
C) After the split, each stockholder will have greater ownership interest in the corporation.
D) The value of each share of stock will increase as a result of the split.
A
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What will be an ideal response?
If there is an unrealized holding gain on available-for-sale debt investments, it is reported ________.
A) as an adjustment to stockholders' equity on the balance sheet B) as a debit to the long-term liabilities C) as a separate line item on the income statement D) as a credit to the short-term assets
Which of the following can be used as a defense in a negligence case?
A) assumption of the risk B) disparagement C) appropriation D) conversion
[The following information applies to the questions displayed below.] Northern Corporation invested $800 cash in South Company stock.What happened as a result of this transaction?
A. South Company has a cash inflow from investing activities. B. The balance in the Cash account on Northern's books decreased, while the balance in the Cash account on South Company's books increased. C. Northern Corporation has a cash outflow from financing activities. D. All of these statements are true.