Supervox Corporation Declared a 3-For-2 Common Stock Split,but This Transaction

question 85

Multiple Choice

Supervox Corporation declared a 3-for-2 common stock split,but this transaction was erroneously recorded as a 50% common stock dividend.As a result:

• A)Retained earnings is understated.
• B)The total dollar amount of stockholders' equity is overstated.
• C)The corporate records do not show the correct number of shares of common stock outstanding.
• D)The common stock account is understated.

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