Share Dividends and Share Splits Have the Following Effects on Retained

question 9

Short Answer

Share dividends and share splits have the following effects on retained earnings:

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Definitions:

Consideration

Something of value exchanged between parties in a contract, making the agreement binding and legally enforceable.

Authorized

Having official permission or approval.

Principal

The amount of money originally invested or loaned, upon which interest is calculated, or in agency relationships, the person who empowers an agent to act on their behalf.

Gratuitous Agent

An agent who acts on behalf of another without receiving any compensation for their services.