When a stock is split 2 for 1, then the ____ figure on the firm's balance sheet is cut in half.
A) value of the common stock
B) par value
C) capital surplus
D) retained earnings

Question

Quizplus · Accepted Answer

Par value represents the minimum amount that a share can be issued for and it appears on the balance sheet under the common stock heading. When a stock is split 2 for 1, the number of outstanding shares doubles and the par value per share is cut in half. As a result, the total par value listed on the balance sheet remains the same.

When a Stock Is Split 2 for 1, Then the ____