An Increase in the Number of Issued and Outstanding Shares

question 17

Multiple Choice

An increase in the number of issued and outstanding shares of stock along with a proportional reduction in the stock's par value is a:

• A)deficit.
• B)stock dividend.
• C)stock split.
• D)cash dividend.

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Definitions:

Leased Equipment

Assets that are rented under a contract for a specified period of time, often with terms that specify usage rights and requirements.

GAAP

A collection of commonly followed accounting rules and standards for financial reporting, used primarily in the United States.

Expense Recognition

Expense Recognition is an accounting principle that dictates the specific conditions under which expenses are recognized and reported in financial statements.

Revenue Recognition

The accounting principle dictating how and when revenue is recognized on the financial statements, ensuring it reflects the transfer of promised goods or services to customers.