Choose the Most Correct Statement Regarding a 2-For-1 Stock Split

question 108

Multiple Choice

Choose the most correct statement regarding a 2-for-1 stock split and a 100% stock dividend.

• A) Neither affects par value
• B) Both cause the same reduction in retained earnings
• C) Both double the number of shares outstanding
• D) Both cause a significant decrease in the common share account
• E) Only one affects contributed capital in excess of par on common shares

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Definitions:

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A disposition in psychology characterized by the assessment of an entity with an extent of favoritism or dislike.

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The actions or reactions of individuals, usually in relation to the environment, including the ways they act, react, and interact.

Levels of Analysis

Different perspectives used in psychology to understand a phenomenon, ranging from biological to psychological to social-cultural levels.

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The actions or reactions of an individual, usually in relation to the environment, that can be observed and measured.