1. When a company declares a 2-for-1 stock split, the number of outstanding shares

a. is doubled compared to the number of shares that were outstanding prior to the split.

b. stays the same, but, stockholder's equity doubles.

c. is doubled, while the number of issued shares is reduced to one-half of the original issued shares.

d. is reduced, and the number of issued shares is doubled.

2. Tara Corporation purchased supplies at a cost of $15,000 during 2008. At January 1, 2008, supplies on hand were $2,000. At December 31, 2008, supplies on hand are $2,500. Calculate supplies expense for 2008.

a. 15,500

b. $14,500

c. 15,000

d. 17,000

3. In a statement of cash flows, purchasing another company or disposing of property, plant, and equipment are:

a. operating activities

b. investing activities

c. financing activities

d. liquidity activities