Which of the Following Statements Is TRUE

question 160

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:

Contributory Programs

Government welfare programs that require individuals to contribute through taxes or other payments in order to be eligible for benefits, such as Social Security.

Noncontributory Programs

Government programs that provide welfare benefits not based on the recipients' prior contributions or taxes.

Tax Expenditures

Government revenue losses attributed to tax laws that allow special exclusions, exemptions, or deductions.

Social Policies

Policies designed to address social issues and promote social welfare, often involving governmental intervention to provide services and support in areas like healthcare, education, and housing.