A 2-For-1 Stock Split Is Declared

question 89

Multiple Choice

A 2-for-1 stock split is declared. In this case which of following statements is true?

• A) the cash account declines
• B) the common stock account rises
• C) the retained earnings fall
• D) the number of common shares increases

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Definitions:

Deferral Method

An accounting technique that involves postponing the recognition of certain revenues or expenses until a later accounting period.

Programmatic Reporting

Reporting focused on the outcomes and impacts of programs, often related to policy or service implementations.

Endowment Contribution

A donation made to an organization with the stipulation that the principal is to remain intact in perpetuity or for a defined period, generating income for use.

Deferral Method

A method used in accounting to postpone the recognition of expenses or revenues to a future period.