An Increase in the Number of Authorized, Issued and Outstanding

question 65

Multiple Choice

An increase in the number of authorized, issued and outstanding shares of stock coupled with a proportionate reduction in the stock's par value is a:

• A)stock split.
• B)stock dividend.
• C)cash dividend .
• D)deficit.

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Definitions:

LIFO

"Last In, First Out," an inventory valuation method where the last items added to inventory are the first ones to be used or sold.

Lower-Of-Cost

An accounting method that values inventory at the lower of its historical cost or current market value.

Market Basis

Market Basis refers to the approach of valuing assets or securities at their current market prices instead of their cost prices or intrinsic values.

Inventory Valuation

The process of determining the monetary amount associated with the inventory at hand, often using methods such as FIFO, LIFO, or weighted average cost.