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Financial Forensics · Quiz 1 · 27 Oct 2024 · September 2024 term

Question 17: The company declared a stock split, and replaced each ou…

Question 17

+0.5 marksOne correct option

Indicate the net effect on Assests, liabilities and owners equity resulting from each of the given transactions
Based on the above data, answer the given subquestions.

The company declared a stock split, and replaced each outstanding share with two new shares

  1. A

    Owners equity increases

  2. B

    Owners equity decreases

  3. C

    No change in Owners equity but asset decreases

  4. D

    No change in Owners equity but asset increases

Show answer

Correct answer

  • A

    Owners equity increases

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Question 17 of 23 in the IIT Madras BS Financial Forensics (Financial Forensics) Quiz 1 paper sat on 27 Oct 2024, in the September 2024 term (IIT M DEGREE AN EXAM QDB2 27 Oct 2024). It carries 0.5 marks.

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