Stock splits and stock dividends have the following effects on retained earnings:
A)Option A
B)Option B
C)Option C
D)Option D

Question

Stock splits and stock dividends have the following effects on retained earnings: 
A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

Stock splits and stock dividends do not have any direct impact on retained earnings. Retained earnings only change with the net income or net loss of the company at the end of the accounting period. Therefore, option B, which states that stock splits and stock dividends do not affect retained earnings, is the correct choice.

Stock Splits and Stock Dividends Have the Following Effects on Retained