Stock Splits

question 46

Multiple Choice

Stock splits:

• A) are a type of dividend.
• B) decrease the number of shares outstanding.
• C) change the par value of the shares.
• D) change the retained earnings account.

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Definitions:

AGI

Adjusted Gross Income, which is your gross income minus allowable deductions, used as a basis for calculating taxable income.

Single

A filing status on tax returns used by individuals who are unmarried or legally separated from their spouse as of the decedent of the tax year.

Foreign Tax Credit

A tax credit that cannot be refunded, allocated for income taxes paid to an overseas government due to withholdings from foreign income tax.

U.S. Tax Liability

The total amount of taxes owed to the U.S. government by an individual, corporation, or other entity in a given tax year.