All else equal, a "normal" stock split
A) generally results in a significant increase in the per share price of the stock from what it was before the split.
B) reduces the number of shares of stock outstanding.
C) increases the number of shares of stock outstanding.
D) does not need to be recognized in any way on the balance sheet of a corporation.
E) increase the dividend per share.
C
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The following users of accounting information have a direct financial interest in a business except
A) a creditor. B) a financial adviser. C) management. D) an investor.
(Use the Healthy Lawn information to answer this question.) The aggregate effect of these entries during 2013 is as follows:
a. Sales Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 Accounts Receivable, Gross . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 b. Sales Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 Accounts Receivable, Net . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . 2,000,000 c. Accounts Receivable, Net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 Sales Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 d. Accounts Receivable, Gross . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 Sales Revenue . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 2,000,000 e. Notes Receivable, Gross . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 Sales Revenue . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 2,000,000
Ideally, for purposes of clarity, pie graphs should contain from ______ to ______ clearly labeled “slices” or divisions.
a. one; two b. two; five c. four; eight d. five; ten
The income statement begins with revenue and subtracts various operating expenses until arriving at Earnings Before Interest and Taxes. Next, interest expense is subtracted to find the taxable income for the period. Then the appropriate taxes are calculated and subtracted. We finally arrive at the ________, the so-called bottom line of the income statement.
A) after-tax income B) before-tax income C) net income D) EBIT