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Which of the Following Statements Is Incorrect

Question 88

Multiple Choice

Which of the following statements is incorrect?


A) Stock dividends increase the number of shares and increase the total market value of owner's equity.
B) Stock splits increase the number of shares but do not increase the total market value of owner's equity.
C) In a stock dividend, the par value of the stock on the company's books is not altered.
D) In a stock split, the par value of the stock on the company's books is altered.

Correct Answer:

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