A Corporation Has 200,000 Shares of $100 Par Value Stock

question 106

Multiple Choice

A corporation has 200,000 shares of $100 par value stock outstanding.If the corporation issues a 2-for-1 stock split,the number of shares outstanding after the split will be:

• A)400,000 shares.
• B)200,000 shares.
• C)600,000 shares.
• D)100,000 shares.

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Definitions:

Revenue Center

A segment or area of a business responsible for generating revenue, focusing on sales and outward-facing operations rather than cost control.

Human Resource Department

The division of a company responsible for managing employee-related processes, including recruitment, training, and benefits.

Department Income Statement

A financial statement that shows the revenue, expenses, and net income or loss of a specific department within a company.

Gross Profit

The difference between revenue and the cost of goods sold before deducting overhead, payroll, taxation, and interest payments.