Circus City Has Decided on a 4-For-1 Stock Split

question 303

Multiple Choice

Circus City has decided on a 4-for-1 stock split. If the firm currently has 800,000 shares outstanding, how many shares will be outstanding after the stock split?

• A) 3,600,000 shares
• B) 2,700,000 shares
• C) 3,200,000 shares
• D) 1,300,000 shares
• E) 4,200,000 shares

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Definitions:

Accounts Payable

Accounts payable are liabilities representing the amount a business owes to its suppliers or creditors for goods and services received but not yet paid for.

Cash Receipts Journal

A journal used to record all cash inflows or money received by the business.

Cash Received

The amount of money a business collects, normally in exchange for goods or services.

Customers Account

Refers to the individual accounts or ledgers maintained by a business to record transactions related to sales, returns, payments, and balances owing for each customer.