A Stock Split Will

question 116

Multiple Choice

A stock split will

• A)have no effect on retained earnings.
• B)increase total paid-in capital.
• C)increase the total par value of the stock.
• D)have no effect on the par value per share of stock.

---

Definitions:

Direct Departmental Expenses

Costs that can be directly attributed to a specific department within an organization, such as salaries of departmental staff.

Indirect Expenses

Expenses that are not directly tied to the production of goods or services, such as administrative and marketing costs.

Contribution Margin

The amount remaining from sales revenue after variable costs are deducted, contributing to covering fixed costs and generating profit.

Contribution Margin

The amount remaining from sales revenue after all variable expenses have been deducted, indicating how much revenue is contributing to fixed costs and profits.