If a Corporation Declares a 2-For-1 Stock Split, Which of the Following

question 188

Multiple Choice

If a corporation declares a 2-for-1 stock split, which of the following is true?

• A)The amount of stockholders' equity is double as a result of the split.
• B)The amount of capital stock is doubled as a result of the split.
• C)The price of each will be doubled as a result of the split.
• D)A stockholder who previously held 100 shares will have 200 shares after the split.

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Definitions:

Accounts Payable

The amount of money owed by a company to its creditors for goods and services purchased on credit.

General Ledger

A comprehensive set of accounts that provides a complete record of all financial transactions of a business, used to prepare financial statements.

Trial Balance

A report listing all accounts and their balances at a specific time, verifying that total debits equal total credits.