The Value of a Share of Stock Currently Selling for $100

question 24

Multiple Choice

The value of a share of stock currently selling for $100 after a 1 for 5 split is:

• A)$20
• B)$40
• C)$500
• D)$1000
• E)none of the above

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Definitions:

Fundamental Qualitative Characteristics

The primary attributes that make the information provided in financial statements useful to users.

FASB Conceptual Framework

A foundational set of objectives and concepts that guide the Financial Accounting Standards Board in developing accounting standards.

GAAP

Generally Accepted Accounting Principles; a collection of commonly followed accounting rules and standards for financial reporting in the United States.

Financial Reporting

Financial reporting involves the disclosure of financial information to various stakeholders about the company's performance over a period.