Which of the Following Would Be Included in the Entry

question 140

Multiple Choice

Which of the following would be included in the entry to record a 2-for-1 stock split?

• A) There is no journal entry to record a stock split.
• B) Common stock would be credited.
• C) Retained earnings would be credited.
• D) Retained earnings would be debited.

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Definitions:

Legal Requirements

Mandates established by law that must be followed by individuals, organizations, or businesses.

Property Dividend

A dividend paid to shareholders in the form of assets other than cash, typically securities or physical assets owned by the company.

Bonds

Fixed-income investments representing a loan made by an investor to a borrower, often corporate or governmental.

Stock Dividend

A dividend paid to shareholders in the form of additional shares of the company's stock, rather than in cash.