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.

---

Definitions:

Leucopoiesis

The production of white blood cells, a critical process in the body's immune response.

Hemophilia C

Hemophilia C, also known as Factor XI deficiency, is a mild form of hemophilia causing abnormal bleeding due to a lack of Factor XI.

Blood Urea Nitrogen

A measure of the amount of nitrogen in the blood in the form of urea, used to assess kidney function.

Bicarbonate

An alkaline compound with the formula HCO3-, involved in the buffering of pH levels in the blood and other bodily fluids.