Final Review Sheet Acct 102 
Final Review Sheet
1. A 2-for-1 stock split will:
A. Increase the total par value of the stock and increase the number of shares outstanding.
B. Decrease the total par value of the stock and increase the number of shares outstanding.
C. Not change the total par value of the stock and increase the number of shares outstanding.
D. Increase total stockholders' equity.
2. 73. Which statement is true about a stock split?
A. Total shareholders' equity increases.
B. Total shareholders' equity decreases.
C. Total shareholders' equity remains the same.
D. A change in total stockholders' equity depends upon whether it is a 2-for-1 split or a 1-for-2 split.
3. 77. Treasury stock:
A. Is an asset.
B. Increases total stockholders' equity.
C. Decreases total stockholders' equity.
D. Does not change total stockholders' equity.
4. 78. The purchase of treasury stock for cash will:
A. Increase stockholders' equity.
B. Not increase nor decrease stockholders' equity.
C. Decrease stockholders' equity.
D. Not change total assets.
5. 81. A 2-for-1 stock split:
A. Is accounted for in the same way as a 100% stock dividend.
B. Increases the number of outstanding shares of common stock, but par value per share remains the same as before the split.
C. Is recorded by transferring the par value of additional shares from retained earnings to the common stock account.
D. Should logically cause the market price per share to drop by approximately 50%.
6. 87. A 2-for-1 stock split will have what effect upon the following items?
A. Option A
B. Option B
C. Option C
D. Option D
7. 82. Does treasury stock represent?
A. Shares of ownership in the United States Treasury Department.
B. A current asset.
C. Authorized shares that have never been issued.
D. Previously outstanding shares that have been repurchased by the issuing company.
8. 83. Stock that had been issued by a corporation and later reacquired is classified as:
A. Treasury stock.
B.
1. A 2-for-1 stock split will:
A. Increase the total par value of the stock and increase the number of shares outstanding.
B. Decrease the total par value of the stock and increase the number of shares outstanding.
C. Not change the total par value of the stock and increase the number of shares outstanding.
D. Increase total stockholders' equity.
2. 73. Which statement is true about a stock split?
A. Total shareholders' equity increases.
B. Total shareholders' equity decreases.
C. Total shareholders' equity remains the same.
D. A change in total stockholders' equity depends upon whether it is a 2-for-1 split or a 1-for-2 split.
3. 77. Treasury stock:
A. Is an asset.
B. Increases total stockholders' equity.
C. Decreases total stockholders' equity.
D. Does not change total stockholders' equity.
4. 78. The purchase of treasury stock for cash will:
A. Increase stockholders' equity.
B. Not increase nor decrease stockholders' equity.
C. Decrease stockholders' equity.
D. Not change total assets.
5. 81. A 2-for-1 stock split:
A. Is accounted for in the same way as a 100% stock dividend.
B. Increases the number of outstanding shares of common stock, but par value per share remains the same as before the split.
C. Is recorded by transferring the par value of additional shares from retained earnings to the common stock account.
D. Should logically cause the market price per share to drop by approximately 50%.
6. 87. A 2-for-1 stock split will have what effect upon the following items?
A. Option A
B. Option B
C. Option C
D. Option D
7. 82. Does treasury stock represent?
A. Shares of ownership in the United States Treasury Department.
B. A current asset.
C. Authorized shares that have never been issued.
D. Previously outstanding shares that have been repurchased by the issuing company.
8. 83. Stock that had been issued by a corporation and later reacquired is classified as:
A. Treasury stock.
B.