Use I = Increase,D = Decrease,or N = No Effect,to

question 107

Essay

Use I = Increase,D = Decrease,or N = No effect,to indicate the effect on retained earnings for each of the listed transactions.
____ A net loss for the year.
____ A stock split effected in the form of a stock dividend.
____ A stock split in which the par per share is reduced (but not effected in the form of a stock
dividend).
____ Declaration of a 5% stock dividend.
____ Declaration of a cash dividend.
____ Issue stock for noncash assets.
____ Payment of previously declared cash dividend.
____ Retirement of common stock at a cost greater than the original issue price.
____ Retirement of common stock at a cost less than the original issue price.
____ Resale of treasury stock for less than book value assuming no previous
treasury stock sales.

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Definitions:

Political Blunder

A significant mistake or error in judgment made in a political context, often resulting in negative consequences.

Being Tactless

The quality of being blunt or direct in a manner that may be perceived as insensitive or rude.

Influential People

Individuals who have the power, through their position, expertise, or personality, to affect change or sway decisions within a group or organization.

Strategic Contingency Theory

An explanation of sources of power suggesting that units best able to cope with the firm’s critical problems and uncertainties acquire relatively large amounts of power.