A 2-For-1 Stock Split Is Declared

question 76

Multiple Choice

A 2-for-1 stock split is declared. In this case which of following statements is true?

• A) The cash account declines.
• B) The common stock account rises.
• C) The retained earnings fall.
• D) The par value of the common stock is reduced.

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Definitions:

Common Reasons

Frequently encountered or widely accepted causes or justifications for an action or event.

Resist Change

The tendency of individuals or organizations to oppose or struggle against modifications to their current state or practices.

Systems Dynamics

A methodology for understanding the behavior of complex systems over time through stocks, flows, feedback loops, and time delays.

Wishful Fantasy

Engaging in imaginative thoughts about desires or situations with little grounding in reality, often as a form of mental escape.