The Primary Purpose of a Stock Split Is to ________

question 52

Multiple Choice

The primary purpose of a stock split is to ________.

• A) issue additional shares
• B) increase the dividend
• C) reduce the price of a stock
• D) reduce trading activity

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Definitions:

Voucher

A document that authorizes a payment and records details about the transaction but does not represent cash itself.

Dividend Journal

A financial record that tracks dividends declared and paid by a company to its shareholders.

Receiving Report

A document that records the details of goods received from a supplier, verifying the quantities and condition of the goods.

Check Register

A record of checks written, deposits made, and balances in a checking account.