A Stock Dividend and a Stock Split Should, at Least

question 56

True/False

A stock dividend and a stock split should, at least conceptually, have the same effect on shareholders' wealth.

---

Definitions:

Equipment Cost

The total expense incurred in purchasing and preparing equipment for its intended use, including acquisition, delivery, and setup costs.

Land Account

An account in the financial statements that tracks the cost of land owned by a company.

Depletion Charge

A depletion charge is an accounting technique used to allocate the cost of extracting natural resources from the Earth over the period those resources are consumed.

Depreciation Expense

The distribution of a physical asset's cost across its lifespan, mirroring its depreciation over time.