-Refer to Lakeshore Industries

question 178

Multiple Choice

-Refer to Lakeshore Industries. What is the effect of a 2-for-1 stock split if the market value of the common stock is $20 per share at the time the stock split is declared?

• A)A stock split has no impact on any of the stockholders' equity account balances.
• B)Total stockholders' equity increases $750,000.
• C)Cash increases $750,000.
• D)$1,500,000 of retained earnings is transferred to the capital stock accounts.

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Definitions:

Defense Mechanisms

Psychological strategies used by individuals to cope with reality and to maintain self-image, often unconsciously.

Reality

The state of things as they actually exist, as opposed to an idealistic or notional idea of them.

Defense Mechanism

Psychological strategies used unconsciously to protect oneself from anxiety or stress by denying or distorting reality.

Projection

A defense mechanism where an individual attributes their own unacceptable thoughts, feelings, or motives to another person.