Which Feature Is Common to Both Stock Splits and Stock

question 97

Multiple Choice

Which feature is common to both stock splits and stock dividends?

• A)A reduction in total stockholders' equity.
• B)A reduction in retained earnings.
• C)An increase in the value of common shareholders' equity.
• D)An increase in the number of shares outstanding.

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Definitions:

Costs Per Equivalent Unit

A calculation used in process costing that distributes costs evenly across units produced, factoring in various stages of completion.

Weighted-Average Method

An inventory costing method that assigns cost to inventory on the basis of the average cost of all similar goods available during the period.

Equivalent Units of Production

A conversion of partially completed units into a number of fully completed units during a period, used in process costing systems.

Costs Per Equivalent Unit

A calculation used in process costing that determines the cost of a single completed unit, considering work done on partial units.