Fisher Company Has 1,000,000 Share of Common Stock with a Par

question 32

Multiple Choice

Fisher Company has 1,000,000 share of common stock with a par value of $10.Additional paid-in capital totals $10,000,000 and retained earnings is $12,000,000.The directors declare a 6% stock dividend when the market value is $5.The reduction of retained earnings as a result of the declaration will be:

• A) $0
• B) $300,000
• C) $600,000
• D) $500,000
• E) none of the answers are correct

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Definitions:

Retroactive Interference

is a psychological phenomenon where newly learned information interferes with and impairs the recall of previously learned information.

Free Recall

A process in memory psychology where an individual is asked to remember information in any order without cues.

Cued Recall

A memory retrieval process in which cues are given to elicit the recall of information, enhancing the ability to remember previously learned material.

Tip-Of-The-Tongue Phenomenon

The experience of feeling certain that one knows a word or name, yet being unable to recall it at the moment, often accompanied by a strong sense of imminent retrieval.