Instructions: Match each item/event pair below with the indicated change in the
ID: 2444403 • Letter: I
Question
Instructions: Match each item/event pair below with the indicated change in the item. An individual classification may be used more than once, or not at all. For each dividend, assume that both declaration and payment or distribution has occurred.
Classifications
A. Item increases
B. Item decreases
C. Item is unchanged
D. Direction of change cannot be determined
Item.......Event
____ 1. Par value per common share..
....Cash dividend
____ 2. Book value per share......Stock dividend
____ 3. Total retained earnings....Stock split
____ 4. Total stockholders' equity....
Prior period adjustment increases
last year's net income
____ 5. Earnings per common share...Restriction of retained earnings
____ 6. Total retained earnings...Change in accounting principle
____ 7. Number of common shares outstanding....Stock dividend
____ 8. Total retained earnings....Cash dividend
____ 9. Par value per common share..
..Stock dividend
____ 10. Total paid-in capital..
Stock dividend
Explanation / Answer
Item.......Event Item is unchanged ____ 1. Par value per common share......Cash dividend Item decreases ____ 2. Book value per share......Stock dividend Item is unchanged ____ 3. Total retained earnings....Stock split Item increases ____ 4. Total stockholders' equity.... Prior period adjustment increases last year's net income Item is unchanged ____ 5. Earnings per common share...Restriction of retained earnings Direction of change cannot be determined ____ 6. Total retained earnings...Change in accounting principle Item increases ____ 7. Number of common shares outstanding....Stock dividend Item decreases ____ 8. Total retained earnings....Cash dividend Item is unchanged ____ 9. Par value per common share....Stock dividend Item increases ____ 10. Total paid-in capital..Stock dividend