Which of the Following Is a True Statement Regarding the Effect

question 24

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.

---

Definitions:

Insider Trading

The unlawful act of conducting trades on the stock market for personal gain by exploiting privileged, non-public information.

Securities Exchange Act

A federal law governing the trading of securities, such as stocks and bonds, aimed at protecting investors and maintaining fair and orderly markets.

Misappropriate

The act of dishonestly or unfairly taking something, especially money, for one's own use.

Quarterly Sales Figures

Financial metrics reported by companies every three months, indicating the total revenue generated from sales within that period.