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Choose the Most Correct Statement Regarding a 2-For-1 Stock Split

Question 92

Multiple Choice

Choose the most correct statement regarding a 2-for-1 stock split and a 100% stock dividend.


A) Both cause the same reduction in retained earnings
B) Only one affects contributed capital in excess of par on common shares
C) Both cause a significant decrease in the common share account
D) Neither affects par value
E) Both double the number of shares outstanding

Correct Answer:

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