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:

Syllogism

A form of logical reasoning where a conclusion is drawn from two given or assumed propositions (premises) with a common term.

Reasoning

The process of thinking about something in a logical way in order to form a conclusion or judgment.

Cognition

The cognitive activity of gaining knowledge and comprehension via thinking, experiencing, and sensory input.

Concepts

Mental categories that group objects, events, or ideas based on shared properties or characteristics.