A 2-For-1 Stock Split Is Declared

question 26

Multiple Choice

A 2-for-1 stock split is declared. In this case, which of the 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:

Sales Plan

A strategic document that outlines the goals, strategies, target markets, and tactics for achieving sales objectives within a specific time frame.

Sales Management Process

The systematic approach involving planning, executing, and controlling a company's sales activities and strategies.

Interrelated Functions

Various functions within a system or an organization that are connected and affect each other, indicating that changes in one function can directly impact others.

Managed

A term that refers to something being handled, directed, governed, or controlled by a person or a group, often used in the context of businesses or services.