Indicate on the Blanks Below the Effect (I = Increase

question 8

Essay

Indicate on the blanks below the effect (I = increase, D = decrease, NE = no effect) of a stock split on each of the items listed.
_____ 1. Assets
_____ 2. Balance of Common Stock account
_____ 3. Total contributed capital
_____ 4. Total retained earnings
_____ 5. Total stockholders' equity
_____ 6. Par value per share
_____ 7. Total number of shares outstanding

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Definitions:

Capital Commitments

The funds that a company plans to spend on long-term assets or projects over a period of time.

Ownership

The state or fact of possessing something, which can include both tangible assets (like property) and intangible assets (like intellectual property).

International Business

A business that conducts for-profit transactions of goods and services across national boundaries.

For-Profit Transactions

Financial activities conducted by businesses with the primary objective of earning profit, as opposed to non-profit or charitable activities.