Which of the Following Actions Will Increase the Balance in the Common

question 131

Multiple Choice

Which of the following actions will increase the balance in the Common stock account?

• A) Cash dividend
• B) Stock split
• C) Stock dividend
• D) Purchase of treasury stock

Grasp the concept of impracticability and impossibility in contract law.

Understand the doctrine of good faith and fair dealing in contractual relationships.

Analyze the responsibilities and rights associated with condition precedent and condition subsequent.

Recognize the legal remedies available for breach of contract including injunctions and damages.

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Definitions:

Financial Accounting Standards Board

An independent organization responsible for establishing and improving financial accounting standards in the United States.

Economic Entity Assumption

A fundamental principle in accounting that separates the transactions of a business from those of its owners or other businesses.

Sole Proprietorship

A business structure owned by a single individual, where the owner is personally responsible for all financial obligations and liabilities.

Personal Economic Events

This refers to financial transactions and activities that directly affect an individual's economic situation, such as income, expenditures, savings, and investments.