All Other Factors Being Equal, Issuing Stocks Rather Than Issuing

question 91

Multiple Choice

All other factors being equal, issuing stocks rather than issuing bonds will:

• A) increase earnings per share.
• B) decrease earnings per share.
• C) have no effect on earnings per share.
• D) Cannot be determined from information given

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Definitions:

Work In Process

Inventory items that are in the process of being produced but are not yet complete.

Subsidiary Ledger

A detailed ledger containing individual accounts with a common characteristic, linked to a summary account in the general ledger.

Materials Ledger

A detailed record tracking the quantity and cost of materials on hand.

Finished Goods Ledger

A ledger that records the costs associated with the manufacturing and production of goods that are completed and ready for sale.