If a Corporation Declares a 2-For-1 Stock Split, Which of the Following

question 227

Multiple Choice

If a corporation declares a 2-for-1 stock split, which of the following is true?

• A)A journal entry is required to show the effect on the stockholders' equity accounts.
• B)The stockholders will have a higher proportionate ownership share after the split.
• C)The par value will be reduced to half of the pre-split par value.
• D)The market price of the stock is expected to increase after the split.

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Definitions:

Acrosomal Reaction

A process in which the enzymes of the sperm's acrosome are released to penetrate an egg and facilitate fertilization.

Epididymis

Elongated structure connected to the posterior surface of the testis, which consists of the head, body, and tail; site of storage and maturation of the spermatozoa.

Oocyte

Immature ovum.

"Window of Opportunity"

describes a period when unique circumstances allow for a particular action to be taken that may not be possible at another time.