Which of the Following Is True of a Stock Split

question 122

Multiple Choice

Which of the following is true of a stock split and a stock dividend?

• A)A stock split will increase total stockholders' equity,but a stock dividend will not.
• B)Neither a stock split nor a stock dividend will increase total stockholders' equity.
• C)A stock dividend will increase total stockholders' equity,but a stock split will not.
• D)A stock split will decrease retained earnings,but a stock dividend will not.

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Definitions:

Unique Approach

A method or strategy that is distinctively different from others and not commonly used.

Creative People

Individuals known for their ability to generate new ideas, solutions, or artistic expressions, often contributing to innovation and problem-solving across various domains.

Think Outside The Box

Adopting an innovative and unconventional approach to problem-solving or creativity.

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Factors in the environment that enhance or stimulate creative thinking and innovation in specific situations.