Which of the Following Statements Regarding a Stock Split Is

question 110

Multiple Choice

Which of the following statements regarding a stock split is true?

• A)A stock split decreases retained earnings.
• B)Stock splits do not require a journal entry.
• C)Stock splits are the same as stock dividends.
• D)Stock splits increase the par value per share.

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Definitions:

Commit

A promise or firm decision to do something.

Commission Salesman

A salesperson who earns income based on the percentage of sales they generate.

Model Year

A reference to the marketed annual iterative period in which a vehicle or product is sold under a particular designation differing from the calendar year.

Bargaining Position

The leverage or advantage one party has in negotiations, influenced by factors such as information, alternatives, and urgency.