A restriction/appropriation of retained earnings

7.A restriction/appropriation of retained earnings

a.increases total retained earnings

b.decreases total assets

c.decreases total retained earnings

d.has no effect on total retained earnings

8.When a corporation completes a 3-for-1 stock split,

a.the market price per share of the stock is decreased

b.the par value per share is decreased

c.the market price per share of the stock and the par value per share are decreased

d.the ownership interest of current stockholders is decreased

Answer

Answer:-7)- A restriction/appropriation of retained earnings- has no effect on total retained earnings (Option D).

Explnataion:- Restriction/Appropriation means:- Amounts of retained earnings that have been limited for use as dividends (sometimes called appropriations)

Retained earnings means:- Net income retained in a corporation.

8)- When a corporation completes a 3-for-1 stock split- the market price per share of the stock and the par value per share are decreased (Option C).

Explanation:-Stock split means:- A reduction in the par or stated value of a common stock and the issuance of a proportionate number of additional shares, hence market price & par value of share will decreased.

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