A Stock Split

question 36

Multiple Choice

A stock split:

• A) increases the total value of the common stock account.
• B) decreases the value of the retained earnings account.
• C) increases the par value per share.
• D) increases the value of the capital in excess of par account.
• E) decreases the market value per share.

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Definitions:

Denominated

Term used to specify the currency in which a financial obligation is expressed or a financial asset's value is designated.

Foreign Currency Translation

The process of converting the financial results of a company's foreign operations into the reporting currency of the parent company.

Deferred Tax Liability

A tax obligation that a company owes but has not yet paid, arising from temporary differences between its taxable income and its accounting earnings.