Which of the following is a characteristic of neither a stock split nor a stock dividend?
A) Cash flow is reduced.
B) The number of shares issued increases.
C) There is no change in shareholders' equity.
D) There is no change in the authorized share capital of the company.

Question

Quizplus · Accepted Answer

Both a stock split and a stock dividend increase the number of shares issued but do not involve the movement of cash. Therefore, cash flow is not affected by either action, making A the characteristic that is not shared by both.

Which of the Following Is a Characteristic of Neither a Stock