Which of the Following Statements Is True

question 181

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 per share of the stock.

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Definitions:

Bayes Law

A principle stating the likelihood of an occurrence, grounded on previously known circumstances that may influence the event.

Bernoulli's Theorem

A principle in probability that describes the behavior of binomial distributions under certain conditions.

Utility Theory

A framework in economics and finance that analyzes choices under uncertainty, emphasizing the satisfaction or utility derived from each possible outcome.

Central Limit Theorem

A statistical theory stating that the sampling distribution of the sample mean approaches a normal distribution as the sample size becomes large, regardless of the shape of the population distribution.