A Stock Split Is Similar to a Stock Dividend in That

question 96

True/False

A stock split is similar to a stock dividend in that it results in additional shares of stock outstanding and is nontaxable.

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Definitions:

Accounting Equation

The foundational formula in accounting representing assets equal to the sum of liabilities and shareholders' equity.

Initial Investment

The initial amount of money spent to start a project, purchase an asset, or invest in a business venture.

Accounting Equation

The foundational principle of accounting that states assets equal liabilities plus equity.

Accounts Payable

Liabilities representing amounts owed by a company to creditors for purchases of goods and services on credit.