A Stock Split

question 104

Multiple Choice

A stock split

• A) is treated by accountants just like a stock dividend.
• B) reduces the retained earnings account.
• C) does not change the total dollar amount in the common stock account.
• D) increases corporate wealth.

---

Definitions:

Increasing Capacity

The process of enhancing the ability of a company or an organization to produce more outputs.

Perform Well

Achieving or exceeding the set standards of job responsibilities through effective and efficient actions.

Future

Concerns or predictions about upcoming events, trends, or conditions, particularly in society, technology, economy, and environment.

Telecommuting

A work arrangement in which employees do not commute to a central place of work but instead use telecommunications technologies to work from remote locations, often their homes.