Which of the Following Is a TRUE Statement Regarding the Effect

question 125

Multiple Choice

Which of the following is a TRUE statement regarding the effect of a stock split and stock dividend on total assets or liabilities?

• 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:

United States

A country located in North America, comprising 50 states, a federal district, five major self-governing territories, and various possessions.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price over a specific period of time.

U.S. Tariff

A tax imposed by the United States government on imported goods and services, intended to protect domestic industries and generate revenue.

Steel

A strong, hard metal made of iron and carbon, and often other elements, used extensively in construction and manufacturing.