You Own 100 Shares with a Market Value of $80

question 27

Multiple Choice

You own 100 shares with a market value of $80 each. The company declares a 4-for-1 split.

• A) Your total market value will be $2,000.
• B) The market price will be approximately $20 per share.
• C) You will own 25 shares.
• D) The company will reduce its Retained Earnings by $8,000.

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Definitions:

Classified Balance Sheet

A financial statement that groups assets, liabilities, and equity into subcategories, providing detail and clarity to financial positions.

Adjusted Trial Balance

A list of all ledger accounts and their final balances after adjustments have been made, used as the basis for preparing financial statements.

End-Of-Period Spreadsheet

A tool used in accounting to compile all account balances at the period's end, aiding in the preparation of financial statements.

Salaries Expense

The total amount paid to employees for services rendered over a specific period, recorded as an expense in financial accounting.