A Stock Split

question 114

Multiple Choice

A stock split:

• A)has no effect on total equity.
• B)increases Common Stock and decreases Paid-in Capital.
• C)increases assets and decreases equity.
• D)decreases Retained Earnings and increases Paid-in Capital.

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Definitions:

Coefficient

A numerical or constant quantity placed before and multiplying the variable in an algebraic expression.

Substitutes

Goods or services that can be used in place of each other, where an increase in price of one leads to an increase in demand for the other.

Cross Elasticity

A measure in economics that shows how the quantity demanded for one good responds to a change in the price of another good.

Quantity Demanded

The total amount of a good or service consumers are willing and able to purchase at a specific price point, during a certain time frame.