Printers for You Began Operations on June 1,2X13

question 9

Multiple Choice

Printers for You began operations on June 1,2X13.The company authorized 15,000 shares of $1 par value common stock.Printers for You sold 15,000 shares of common stock for $5 per share on June 2,2X13.On August 15,2X13,Printers for You repurchased 1/2 of the outstanding common stock for $6 per share.On August 31,2X13,Printers for You sold 1,000 of the treasury stock.On September 1,2X13,the company declared a three-for-one stock split.After the split

• A)total stockholders' equity remained the same.
• B)total stockholders' equity increased.
• C)total stockholders' equity decreased.
• D)assets and liabilities increased.
• E)assets and liabilities decreased.

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Definitions:

Variable Costing

A cost accounting method that includes only variable production costs (direct labor, direct materials, and variable manufacturing overhead) in product costs.

Unit Product Cost

The cost computed for a single unit, encompassing all direct materials, direct labor, and both variable and fixed overheads.

Break-Even

A situation where cumulative expenses and revenues balance out, leaving no profit or loss.

Sales Dollars

The total revenue generated from goods or services sold by a company, measured in dollars.