A stock split does not decrease retained earnings.
BT: Comprehension

Name: A stock split does not decrease retained earnings. BT: Comprehension
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Question

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Retained earnings represent the accumulated profits of a company that have not been distributed as dividends to shareholders. A stock split does not affect the company's earnings or profits, it only increases the number of shares outstanding and decreases the price per share. Therefore, a stock split does not have any impact on retained earnings.

A Stock Split Does Not Decrease Retained Earnings