Which of the Following Is a TRUE Statement

question 26

Multiple Choice

Which of the following is a TRUE statement?

• A) A stock split will increase total stockholders' equity, but a stock dividend will not.
• B) Neither a stock split nor a stock dividend will increase total stockholders' equity.
• C) A stock dividend will increase total stockholders' equity, but a stock split will not.
• D) A stock split will decrease retained earnings, but a stock dividend will not.

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Definitions:

Marginal Revenue

The additional revenue that a business earns from selling one more unit of a good or service.

Market Price

The ongoing cost at which an asset or service is available for buying or selling in a specific market.

Microchips

Small semiconductor devices that contain an integrated circuit, used in various electronic applications.

Price Effect

The impact on consumer demand and market supply when the price of a product changes, influencing the quantity bought and sold.