Supervox Corporation Declared a 3-For-2 Ordinary Share Split, but This

question 12

Multiple Choice

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

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

Identify the logical order of steps during the end-of-period processing.

Understand the role of the end-of-period spreadsheet in preparing post-closing trial balances and its impact on the next accounting period.

Understand the purpose and types of journal entries in accounting.

Calculate a company's current ratio and interpret its significance.

---

Definitions:

Preventive Maintenance

Regular and routine maintenance performed on equipment and machinery to prevent unexpected failures and downtime.

Value-based Pricing

A pricing strategy where the price is based on the perceived or estimated value of a product or service to the customer, rather than the cost of production.

Operating Costs

Expenses associated with the normal business operations, including cost of goods sold and operational overhead.

Operating Cost

Expenses associated with the day-to-day functions of a business, including costs for rent, utilities, and payroll.