Multiple choice

1. When a corporation splits its stock, the total par value of outstanding shares

increases.

decreases.

does not change

2. Stockholders Equity created through the successful operation of the corporation is

paid-in capital.

retained earnings.

treasury stock.

restricted retained earnings

3. At the end of the accounting period, the balances of which types of accounts are carried over to the next accounting period?

revenue, liability, and dividend

asset, expense, and dividend

revenue, expense, and dividend

asset, liability, and stockholders' equity

4. A decrease in stockholders' equity as a result of operating a business isinvestment.

revenue.

expense.

dividends.

Investors are