A 2-For-1 Stock Split

question 27

Multiple Choice

A 2-for-1 stock split:

• A)Is accounted for in the same way as a 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:

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Primary Code

A unique identifier used to specify or distinguish items, conditions, or statuses in a classification or coding system.

Third-Party Payer

An entity (other than the patient or healthcare provider) that pays for healthcare services, often an insurance company.

Type 2 Diabetes Mellitus

A chronic condition characterized by high blood sugar levels due to the body's improper use or production of insulin.