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.

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Definitions:

Prenuptial Agreement

A contract formed between two persons who are contemplating marriage to provide for the division of their property in the event of divorce or death.

Contemplation Of Marriage

A state or period in which individuals consider and plan towards entering into matrimony, often involving pre-nuptial agreements or arrangements.

Compensatory Damages

Money awarded to a plaintiff to reimburse actual losses, expenses, or harm suffered due to the defendant's actions.

Petition For Divorce

The document filed with the court to initiate divorce proceedings. The requirements governing the form and content of a divorce petition vary from state to state.