The Primary Purpose of a Stock Split Is to

question 105

Multiple Choice

The primary purpose of a stock split is to

• A) increase paid-in capital
• B) reduce the market price of the stock per share
• C) increase the market price of the stock per share
• D) increase retained earnings

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Definitions:

Journal Entries

The record of financial transactions as they occur, detailing the accounts that are affected and in what way.

Receipt

A document acknowledging that a payment has been made or that goods have been received.

Supplies Expense

The cost associated with consumable items used during the process of operating a business, recorded as an operating expense on the income statement.

Supplies Order

The process of acquiring necessary materials or goods required for the operation of a business or execution of a task.