An Exchange of One Share of an Old Issue of Stock

question 50

Multiple Choice

An exchange of one share of an old issue of stock for a multiple number of shares of a new issue of stock with reduced par value is known as a:

• A) property dividend.
• B) stock dividend.
• C) stock split.
• D) liquidating dividend.

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Definitions:

Administrative Expense

Costs related to the general operation of a company, which may include salaries of executive staff, office supplies, and utility expenses not directly tied to production.

Period Cost

Costs that are expensed in the period in which they are incurred and are not directly tied to production activity, such as selling, administrative, and general expenses.

Marketing

The process and techniques used by organizations to promote and sell their products or services, including market research and advertising.

Administrative Expense

Expenses related to the general operation of a business, including executive salaries, marketing, and other non-production costs.