Which of the Following Is a True Statement

question 93

Multiple Choice

Which of the following is a true statement?

• A)Both a stock split and a stock dividend will decrease total assets.
• B)Both a stock split and a stock dividend will increase total liabilities.
• C)A stock split will increase total assets, but a stock dividend will not.
• D)Neither a stock split nor a stock dividend will affect total assets or total liabilities.

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Definitions:

Fiscal Year

A one-year period used for financial reporting and budgeting, which may or may not align with the calendar year.

Goods Sold

Goods sold refers to the total quantity of goods that a company has sold to its customers during a specific accounting period.

Asset Turnover Ratio

A financial ratio that measures the efficiency of a company at using its assets to generate sales or revenue.

Total Assets

The sum of everything of value owned by a business, including cash, securities, inventory, property, and other tangible and intangible assets.