Which One of the Following Increases the Number of Shares

question 48

Multiple Choice

Which one of the following increases the number of shares outstanding but does not increase the value of owners' equity?

• A)Stock repurchase
• B)Reverse stock split
• C)Stock split
• D)Cash distribution
• E)Liquidating dividend

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Definitions:

Profit-volume Chart

A Profit-Volume Chart is a graphical representation that shows the relationship between a firm's profits and its volume of sales, illustrating the impact of different sales levels on profits.

Total Sales Revenues

The total income received by a company from its sales of goods or services, before any expenses are subtracted.

Total Costs

The complete sum of expenses incurred by a company in producing goods or services, including fixed, variable, and semi-variable costs.

Margin Of Safety

The difference between actual or expected sales and the breakeven sales, indicating how much sales can decrease before a company incurs a loss.