Which of the Following Statements Is TRUE

question 115

Multiple Choice

Which of the following statements is TRUE?

• A) Both a stock dividend and a stock split increase the balance in the common stock account.
• B) Both a stock dividend and a stock split reduce retained earnings.
• C) Neither a stock dividend nor a stock split will result in net gains or losses.
• D) A stock split increases the par value of the stock.

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Definitions:

Stress-Free

A state or condition where an individual experiences no or minimal stress, leading to a sense of calm and tranquility.

Organic Plant Fertilizer

A natural substance used to enhance plant growth and soil fertility, made from organic materials without synthetic chemicals.

Robinson Crusoe

A fictional character who is used in economic theories and models to explain and analyze individual decision-making in isolation.

Utility Function

A mathematical representation in economics that shows the relationship between individual preferences and the consumption of goods and services.