Which of the following actions will increase the Common Stock account?
A) cash dividend
B) stock split
C) stock dividend declared and distributed
D) purchase of treasury stock

Question

Quizplus · Accepted Answer

Only a stock dividend will directly increase the Common Stock account. A cash dividend will decrease retained earnings, a stock split will increase the number of shares outstanding but does not affect the Common Stock account, and a purchase of treasury stock decreases both the Common Stock and the Treasury Stock accounts.

Which of the Following Actions Will Increase the Common Stock