A Stock Split Decreases Par Value Per Share,whereas Stock Dividends

question 265

True/False

A stock split decreases par value per share,whereas stock dividends do not affect par value per share.

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Definitions:

Business

An organization or enterprise engaged in commercial, industrial, or professional activities, aiming to generate profits through providing goods or services.

Adjusting Accounts

The process of updating ledger accounts through adjusting entries to reflect accurate financial activity and positions.

Temporary Accounts

Accounts used to track revenues, expenses, and withdrawals or dividends during an accounting period, which are closed and reset at the end of the period.

Debits And Credits

Fundamental accounting principles that are used to record every financial transaction, where debits must equal credits in every transaction.