How Do Stock Splits and Stock Dividends Impact Retained Earnings

question 1

Multiple Choice

How do stock splits and stock dividends impact Retained Earnings?

• A)Stock splits increase Retained Earnings and stock dividends have no effect on Retained Earnings.
• B)Stock splits have no effect on Retained Earnings and stock dividends decrease Retained Earnings.
• C)Stock splits and stock dividends both decrease Retained Earnings.
• D)Stock splits and stock dividends have no effect on Retained Earnings.

---

Definitions:

Management Use

Management use typically refers to information or resources utilized by the management team for decision-making and strategic planning purposes.

June Cash Budget

A financial plan that estimates the cash inflows and outflows for a business during the month of June, aiding in managing liquidity.

Cash Receipts

Money received by a business or individual, often recorded in the financial records to track income.

Cash Payments

Money disbursed by a business for various purposes, including operating expenses, debt repayment, and asset purchases.