Reverse Stock Splits Have Which of Following Effects on the Number

question 44

Multiple Choice

Reverse stock splits have which of following effects on the number of shares outstanding?

• A)A reverse split reduces the increases of shares outstanding.
• B)A reverse split reduces the decreases of shares outstanding.
• C)A reverse split has no effect on the number shares outstanding.
• D)A reverse split reduces the number of shares outstanding in proportion to the debt outstanding.

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Definitions:

Cost of Goods Manufactured

The total production cost of goods completed during a specific period.

Work in Process Inventory

The value of unfinished goods in the manufacturing process, including materials, labor, and overhead costs accrued.

Indirect Materials

Indirect materials are supplies used in the production process that do not become an integral part of the finished product and are not directly traceable to specific goods or services produced.

Raw Materials

The basic materials and inputs used in the production process to manufacture finished goods.