Matching
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.
Item Event
Premises:
Par value per common share Cash dividend
Book value per share Stock dividend
Total retained earnings Stock split
Total stockholders' equity Prior period adjustment increases last year's net income
Earnings per common share Restriction of retained earnings
Total retained earnings Change in accounting principle
Number of common shares outstanding Stock dividend
Total retained earnings Cash dividend
Par value per common share Stock dividend
Total paid-in capital Stock dividend
Responses:
Item increases
Item decreases
Item is unchanged
Direction of change cannot be determined
Correct Answer:
Premises:
Responses:
Total retained earnings Cash dividend
Item decreases
Number of common shares outstanding Stock dividend
Item increases
Total paid-in capital Stock dividend
Item increases
Par value per common share Stock dividend
Item is unchanged
Book value per share Stock dividend
Item decreases
Par value per common share Cash dividend
Item is unchanged
Total stockholders' equity Prior period adjustment increases last year's net income
Item increases
Total retained earnings Stock split
Item is unchanged
Total retained earnings Change in accounting principle
Direction of change cannot be determined
Earnings per common share Restriction of retained earnings
Item is unchanged
Premises:
Total retained earnings Cash dividend
Number of common shares outstanding Stock dividend
Total paid-in capital Stock dividend
Par value per common share Stock dividend
Book value per share Stock dividend
Par value per common share Cash dividend
Total stockholders' equity Prior period adjustment increases last year's net income
Total retained earnings Stock split
Total retained earnings Change in accounting principle
Earnings per common share Restriction of retained earnings
Responses:
Item decreases
Item increases
Item increases
Item is unchanged
Item decreases
Item is unchanged
Item increases
Item is unchanged
Direction of change cannot be determined
Item is unchanged
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