Which of the Following Does Not Correctly Describe the Effect

question 112

Multiple Choice

Which of the following does not correctly describe the effect of Mogul Company declaring and distributing a 2-for-1 common stock split?

• A)Mogul's current ratio remained the same.
• B)Mogul's return on equity ratio remained the same.
• C)Mogul's debt-to-equity ratio remained the same.
• D)Mogul's earnings per share remained the same.

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Definitions:

Factory Machinery

Tools and equipment designed for use in the manufacturing process within a factory to produce goods and products.

Rent Expense

The cost incurred for renting property or equipment used in business operations, recognized as an expense on the income statement.

Product Cost

encompasses all expenses directly involved in the manufacturing of a product, including raw materials, labor, and overhead.

Factory Overhead Cost

Expenses related to operating a factory that are not directly tied to individual products, including utilities, rent, and maintenance of machinery.