Which of the Following Is True of a Stock Split

question 122

Multiple Choice

Which of the following is true of a stock split and a stock dividend?

• A)A stock split will increase total stockholders' equity,but a stock dividend will not.
• B)Neither a stock split nor a stock dividend will increase total stockholders' equity.
• C)A stock dividend will increase total stockholders' equity,but a stock split will not.
• D)A stock split will decrease retained earnings,but a stock dividend will not.

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Definitions:

Flexible Budget

A budget that adjusts or scales according to changes in the volume of activity, revenue, or other factors.

Sales Variance

The difference between actual sales and budgeted or forecasted sales, analyzed to understand revenue performance.

Flexible Budget Sales

Sales projections within a flexible budget that adjust based on actual levels of activity, rather than being fixed.

Fixed Budget Sales

A financial plan that outlines expected sales for a period based on set conditions, without adjustments for variations in actual performance.