Answer the following statements true (T) or false (F)
1. A stock split can involve issuing more shares of stock than authorized in the corporate charter.
2. A 3-for-1 stock split of a $3 par value share will result in three shares of $1 par value being issued for
each share of $3 par value stock.
3. A memorandum entry is an entry in the journal that notes a significant event but has no debit or credit
amount.
4. A small stock dividend, a large stock dividend and a stock split have no effect on total assets.
5. Small and large stock dividends have no effect on the Common Stock account.
1. FALSE
2. TRUE
3. TRUE
4. TRUE
5. FALSE -Explanation: Small and large stock dividends increase Common Stock.
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The other laundromat, E-Z Clean, offers free pick-up and delivery during a narrow time frame, which is most likely an example of:
A) a product based on a company's resources, not customers' needs B) a product based on industry information, not company resources C) a product developed after trial and error D) a customer-facing sales staff E) a customer loyalty program
Standard costs are preset costs for delivering a product or service under normal conditions.
Answer the following statement true (T) or false (F)
“Short-term price increases tend to depress industry profits in the long run by accelerating the introduction of new capacity and depressing market demand.” Discuss.
What will be an ideal response?
An agent that represents one or more manufacturers on a commission basis and offers noncompeting lines of products to customers is a ____________________ agent.
Fill in the blank(s) with the appropriate word(s).