Which Phase of the Accounting Process Involves Recognizing the Effect

question 46

Multiple Choice

Which phase of the accounting process involves recognizing the effect of transactions on assets,liabilities,owner's equity,revenue,and expenses of a business?

• A) input
• B) processing
• C) output
• D) summarizing

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Definitions:

Dividend Payable

Liability showing amount of cash dividend owed.

Stock Split

Issuing of additional shares of stock to stockholders; total par or stated value remains the same.

Par Value

The face value of a bond or stock, representing the amount to be returned to the bondholder at maturity or the value assigned to a share of stock for accounting purposes.

Stock Split

A corporate action to increase the number of shares, reducing the price per share correspondingly without changing the market capitalization.