A Stock Split Is Different from a Stock Dividend Due

question 85

Multiple Choice

A stock split is different from a stock dividend due to:

• A) delisting by stock exchanges.
• B) the resulting change in market price of the common shares.
• C) the shares outstanding after the split or dividend will have an increased market value.
• D) no transfer of funds from retained earnings to the capital accounts.

---

Definitions:

Trade Surpluses

A condition in international trade where a country exports more goods and services than it imports.

Balance Of Payments Surpluses

A situation where the total amount of money coming into a country from abroad exceeds the total amount of money leaving the country.

Account Surpluses

Refers to the positive balance of the funds in an account, or situations where revenues exceed the expenditures in fiscal accounts.

Trade Deficit

A situation where a country imports more goods and services than it exports.