Which of the following statements regarding a stock split is true?
A)A stock split decreases retained earnings.
B)Stock splits do not require a journal entry.
C)Stock splits are the same as stock dividends.
D)Stock splits increase the par value per share.

Question

Quizplus · Accepted Answer

A stock split does not require a journal entry because it does not affect the total dollar amount of the company's equity; it only increases the number of shares and decreases the par value per share.

Which of the Following Statements Regarding a Stock Split Is