Stock Dividends and Stock Splits Have the Following Effects on Retained

question 14

Short Answer

Stock dividends and stock splits have the following effects on retained earnings: $\begin{array} {c c } & \text { Stock Splits } & \text { Stock Dividends } \\\end{array}$
A) $\begin{array} {c c } & \text { Increase } && \text { No change } \\\end{array}$
B) $\begin{array} {c c } &\text { No change } & \text { Decrease } \\\end{array}$
C) $\begin{array} {c c } &\text { Decrease } && \text { Decrease } \\\end{array}$
D) $\begin{array} {c c } & \text { No change } & \text { No change }\end{array}$

• A)\(\begin{array} {c c } & \text { Increase } && \text { No change } \\\end{array}\)
• B)\(\begin{array} {c c } &\text { No change } & \text { Decrease } \\\end{array}\)
• C)\(\begin{array} {c c } &\text { Decrease } && \text { Decrease } \\\end{array}\)
• D)\(\begin{array} {c c } & \text { No change } & \text { No change }
• \end{array}\)

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Definitions:

Control Limit

The upper and lower bounds on a control chart in statistical process control that signal when a process might be out of control or requires investigation.

Sample Means

The average values obtained from multiple subsets of a population.

Pooled Standard Deviation

A method used to estimate the standard deviation of several different populations when the mean of each population may differ but the true standard deviation of each population is assumed to be the same.

Lower Control Limit

The lowest value on a control chart, indicating the threshold below which a process output is considered out of control.