Which of the Following Show the Proper Effect of a Stock

question 242

Short Answer

Which of the following show the proper effect of a stock split and a stock dividend? $\begin{array}{ccc}&&&&& \text { Item } &&&&& \text { Stock Split } & \text { Stock Dividend } \\\end{array}$
A) $\begin{array}{ccc}\text { Total paid-in capital } & &&\text { Increase } &&& \text { Increase } \\\end{array}$
B) $\begin{array}{ccc}\text { Total retained earnings } && \text { Decrease } && \text { Decrease } \\\end{array}$
C) $\begin{array}{ccc} \text { Total par value (common) } & \text { Decrease }& & \text { Increase } \\\end{array}$
D) $\begin{array}{ccc}\text { Par value per share } &&&& \text { Decrease } & &\text { No change } \\\end{array}$

• A)\(\begin{array}{ccc}\text { Total paid-in capital } & &&\text { Increase } &&& \text { Increase } \\\end{array}\)
• B)\(\begin{array}{ccc}\text { Total retained earnings } && \text { Decrease } && \text { Decrease } \\\end{array}\)
• C)\(\begin{array}{ccc} \text { Total par value (common) } & \text { Decrease }& & \text { Increase } \\\end{array}\)
• D)\(\begin{array}{ccc}\text { Par value per share } &&&& \text { Decrease } & &\text { No change } \\
• \end{array}\)

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