Which of the Following Is TRUE of a Stock Split

question 58

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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