For Each of the Following,indicate the Step of the Basic

question 65

Essay

For each of the following,indicate the step of the basic business model that is most appropriate for the activity listed.
1.Step one - Obtaining financing
2.Step two - Investing in assets
3.Step three - Generating revenues
4.Step four - Producing net income
_____ Increasing retained earnings.
_____ Borrowing money from creditors.
_____ Selling goods to consumers.
_____ Buying equipment.
_____ Selling shares of company stock.
_____ Buying goods for future sale.
_____ Selling services to consumers.

Calculate the impact of stock splits on par value and the number of shares.

Understand the calculation of earnings per share (EPS) and its implications.

Recognize the impact of treasury stock transactions on stockholders' equity.

Understand the accounting for and effects of restrictions/appropriations of retained earnings.