Which of the following balance sheet accounts will be affected by a stock dividend but not by a stock split?

Question

Quizplus · Accepted Answer

A stock dividend affects retained earnings because it represents a transfer from retained earnings to common stock, whereas a stock split only affects the number of shares outstanding and does not impact retained earnings. Cash, common stock, and dividends-in-arrears would be affected by both a stock dividend and a stock split.

Which of the Following Balance Sheet Accounts Will Be Affected