The Only Definite Result from a Share Dividend or a Share

question 8

Multiple Choice

The only definite result from a share dividend or a share split is [blank].

• A)an increase in the P/E ratio
• B)an increase in the common share's market value
• C)an increase in the number of shares outstanding
• D)cannot be determined from the above

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Definitions:

Accounts Payable

The amounts a company owes to suppliers or creditors for products or services bought on credit.

Job-Order Costing System

An accounting method used to track the costs associated with producing specific jobs or batches of products.

Overapplied

Refers to a situation where the amount of overhead allocated to products exceeds the actual overhead incurred, creating an overapplied balance.

Underapplied

A situation where the allocated manufacturing overhead costs are less than the actual overhead costs incurred, leading to a discrepancy in accounting records.