A 2-For-1 Stock Split Is Declared

question 26

Multiple Choice

A 2-for-1 stock split is declared. In this case, which of the following statements is true?

• A) The cash account declines.
• B) The common stock account rises.
• C) The retained earnings fall.
• D) The par value of the common stock is reduced.

---

Definitions:

Long-Term Relationships

Enduring associations between companies and their stakeholders, such as customers or suppliers, typically characterized by trust, loyalty, and mutual benefit over time.

Fixed-Position Layout

An operational strategy where the product remains stationary, and workers, materials, and equipment are moved as needed.

Product Layout

An arrangement of equipment or workstations in the sequence that production operations are performed to manufacture a product.

Process Layout

An arrangement of workplace resources according to the sequence of production tasks, optimizing workflows and efficiency in manufacturing or service processes.