Stock Splits and Stock Dividends Have the Following Effects on Retained

question 60

Multiple Choice

Stock splits and stock dividends have the following effects on retained earnings:

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Without Recourse

A term indicating that the seller or transferor of a financial instrument is not liable to the buyer or transferee in case of default.

Discharged

Refers to the completion or termination of a legal obligation or debt.

Primary Liability

The direct responsibility to pay a debt or fulfill an obligation, without relying on another to first default.

Certified Check

A personal check for which the issuing bank guarantees payment by certifying that sufficient funds are available and set aside.