Correct Answer:
D. Increases the number of shares and reduces the price per share without changing total equity
A split changes the number of shares outstanding but not total market value or equity.
November 13, 2026 · Accounting and Finance MCQs, Financial Management & Analysis MCQs
A stock split:
Related MCQs
A budget deficit occurs when:
A.
Government expenditure exceeds government revenue
B.
Government revenue exceeds expenditure
C.
Revenue equals expenditure
D.
Public debt is zero
Correct answer is:
A. Government expenditure exceeds government revenue
Do you agree with this answer?
A trial balance is prepared mainly to:
A.
Prove that the accounts are free from all errors
B.
Calculate the tax payable
C.
Replace the balance sheet
D.
Check the arithmetical accuracy of the ledger by comparing total debit and credit balances
Correct answer is:
D. Check the arithmetical accuracy of the ledger by comparing total debit and credit balances
Do you agree with this answer?
Which of the following is a test of controls?
A.
Confirming receivable balances with customers
B.
Recalculating depreciation expense
C.
Inspecting purchase orders for evidence of authorization signatures
D.
Counting inventory at year end
Correct answer is:
C. Inspecting purchase orders for evidence of authorization signatures
Do you agree with this answer?
Surrender of savings means that:
A.
Funds are spent quickly at year end
B.
Departments keep unspent money for the next year
C.
Unspent funds that will not be needed are returned to the government before the end of the fiscal year
D.
Savings are invested in bonds
Correct answer is:
C. Unspent funds that will not be needed are returned to the government before the end of the fiscal year
Do you agree with this answer?
The normal balance of an asset account is:
A.
Debit
B.
Credit
C.
Zero
D.
Either debit or credit depending on the month
Correct answer is:
A. Debit
Do you agree with this answer?
A contingency fund is:
A.
A fund kept to meet urgent unforeseen expenditure
B.
A fund for planned salaries
C.
A fund for repayment of loans only
D.
A private fund of officers
Correct answer is:
A. A fund kept to meet urgent unforeseen expenditure
Do you agree with this answer?
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