For accounting purposes,a stock split has been defined as a stock dividend exceeding
A)25%.
B)35%.
C)45%.
D)55%.

Question

Quizplus · Accepted Answer

According to accounting standards, a stock split is defined as a distribution of additional shares of stock in a company to existing shareholders. A stock split can be in the form of a stock dividend, which is often used to increase the number of shares outstanding in a company. A stock dividend that exceeds 25% is generally considered to be a stock split for accounting purposes. This means that if a company issues additional shares in excess of 25% of the outstanding shares, it must be accounted for as a stock split.

For Accounting Purposes,a Stock Split Has Been Defined as a Stock