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:

Classical Approach

A methodological approach in statistics that relies on theoretical probability distributions and assumptions for hypothesis testing and estimation.

Assigning Probabilities

The process of determining the likelihood of various outcomes in an experiment or situation.

Equally Likely

A situation where all outcomes of an experiment or event have the same probability of occurring.

Mutually Exclusive

Characteristics of events that cannot occur at the same time within a single experiment or trial.