A Corporation Began Operations on October 1, 2019, with 3,000

question 187

Multiple Choice

A corporation began operations on October 1, 2019, with 3,000 shares of $2 par common stock authorized. The company issued common stock on several occasions during 2019 and 2020. On December 31, 2020, the company repurchased 1,000 shares of its outstanding shares and then reissued 500 of these shares on March 1, 2021. On June 1, 2021, the company's board of directors declared a 2-for-1 stock split. As a result of this stock split, which of the following is true?

• A)Assets decreased.
• B)The number of shares issued decreased.
• C)Total liabilities decreased.
• D)Total stockholders' equity remained the same.

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Definitions:

Rumours

Unverified information or stories that are spread among people, often lacking clear evidence, and can influence perception and behavior.

Non-verbal Communication

The process of conveying a message without the use of words, including gestures, facial expressions, and body language.

Jargon

Specialized language used by job holders or members of particular occupations or organizations.

Filtering

The process of selectively presenting or withholding information to manage a person's reactions.