ABC Corporation Issued a Two-For-One Stock Split

question 33

Multiple Choice

ABC Corporation issued a two-for-one stock split. The number of outstanding shares before the split was 20,000 and the par value was $24 per share. After the split, what was the par value per share and number of shares? (Round your answer to the nearest cent.)

• A) 40,000 shares and $24 per share
• B) 40,000 shares and $6.00 per share
• C) 40,000 shares and $12.00 per share
• D) 40,000 shares and $48 per share

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Definitions:

Average Daily Cost

The average cost incurred by a business or an operation calculated on a daily basis.

Sales In Inventory

This term seems incorrect or incomplete. The correct term is likely "Inventory," which refers to the goods and materials a business holds for the purpose of resale.

FIFO

First In, First Out (FIFO) is an inventory valuation method where the costs of the oldest items are the first to be expensed, used to calculate cost of goods sold.

Cost Of Goods Sold

The specific costs involved in producing goods for sale by a company, covering materials and labor.