A Stock Split Decreases Par Value Per Share,whereas Stock Dividends

question 265

True/False

A stock split decreases par value per share,whereas stock dividends do not affect par value per share.

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Definitions:

Merchandising Company

A business that purchases goods wholesale and sells them retail; primarily involved in the selling of merchandise.

Gross Profit

The amount by which sales revenue exceeds the cost of goods sold, prior to the subtraction of administrative and other expenses.

Income From Operations

The profit generated from a company's regular, core business operations, excluding any earnings from investments and other non-operational sources.

Operating Expenses

Expenses incurred from the regular activities of a business, such as rent, utilities, and salaries.