Beck Corporation Declared a 2-For-1 Common Stock Split, but This

question 149

Multiple Choice

Beck Corporation declared a 2-for-1 common stock split, but this transaction was erroneously recorded as a 100% common stock dividend. As a result:

• A) The common stock account is overstated.
• 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 par value per share is understated.

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Definitions:

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or their community.

Capital Stock Per Worker

A measure of the amount of capital available per employee in a company or economy, indicating the level of investment in tools, buildings, and equipment each worker has to work with.

Output Per Worker

The average production or output produced per unit of labor, often used as a measure of labor productivity.

GDP Devoted To Investment

The portion of the Gross Domestic Product that is spent on investments in capital goods, infrastructure, and other activities to promote economic growth.