Effect of stock split on total value of common stock


1. If organization purchases $700 of supplies on account, with terms of 2/15, n50:

a. $650 must be paid within 15 days of the invoice date
b. $698 must be paid within 50 days of the invoice date
c. $686 can be paid within 15 days of the invoice date, or $700 must be paid within 50 days of the invoice date
d. $686 can be paid within 15 days of the invoice date, or $714 must be paid within 50 days of the invoice date

2. ABC Company just announced 4 for 1 stock split. What effect will this have on:

a. The market value
b. The number of total share
c. The total value of common stock on ABC Company's books

Label each answer clearly.

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Accounting Basics: Effect of stock split on total value of common stock
Reference No:- TGS021421

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