Explain How Both a Stock Split and a Stock Dividend

question 2

Essay

Explain how both a stock split and a stock dividend affect the computation of the weighted-average number of shares outstanding.

---

Definitions:

Usefulness

Usefulness in a business context often refers to the degree to which information or data meets the needs of its users, enabling informed decision-making.

General Journal

A book or electronic record in accounting where transactions are entered before they are posted to individual accounts.

Cash Receipts Journal

A specialized accounting journal used to record all cash inflows or receipts into a business.

Sales Journal

A book or digital record used in accounting to record all sales transactions of a company.