A Stock Split That Is Accomplished by a Change in Par

question 60

Multiple Choice

A stock split that is accomplished by a change in par value that is not proportional to the new number of shares or if the firm does not change the par value, the firm

• A)does not require a journal entry.
• B)decreases Additional Paid-In Capital or Retained Earnings.
• C)increases Additional Paid-In Capital or Retained Earnings.
• D)decreases Cash or Retained Earnings.
• E)increases Cash or Retained Earnings.

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