A 2-For-1 Stock Split

question 58

Multiple Choice

A 2-for-1 stock split:

• A)Is accounted for in the same way as a 100% stock dividend.
• B)Increases the number of outstanding shares of common stock,but par value per share remains the same as before the split.
• C)Is recorded by transferring the par value of additional shares from retained earnings to the common stock account.
• D)Should logically cause the market price per share to drop by approximately 50%.

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Definitions:

Fine Motor Skills

The ability to use small muscle groups for detailed movements, such as writing or buttoning.

Centration

The tendency to focus on one part of a stimulus, situation, or idea and exclude all others; a characteristic of preoperational reasoning.

Egocentrism

A cognitive characteristic where an individual has difficulty understanding or considering perspectives other than their own, prevalent in early childhood.

Egocentrism

The cognitive inability to understand or assume any perspective other than one's own, often experienced by children during early development stages.