Stock splits do NOT impact the value of the contributed capital or retained earnings accounts.

Name: Stock splits do NOT impact the value of the contributed capital or retained earnings accounts.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Stock splits do not change the total value of contributed capital or retained earnings, they just increase the number of shares outstanding while decreasing the price per share. Therefore, the value per share remains the same and the total value of the accounts remains unchanged.

Stock Splits Do NOT Impact the Value of the Contributed