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:

Time Value of Money

The idea that money in hand today holds greater value than an equivalent sum in the future because of its potential to generate earnings.

Post-Audit

The examination and review of a project's financial and operational outcomes after its completion, to assess its effectiveness and adherence to budget.

Post-Completion Audit

A review conducted after the completion of a project to evaluate its success, including its adherence to budget, timelines, and the achievement of expected benefits.

Profitability Indexes

A calculation used to assess the attractiveness of an investment by dividing the present value of cash flows by the initial investment.