Which of the following statements regarding stock splits is incorrect?
A) A stock split involves a reduction in the stock's par value.
B) A stock split increases total owners' equity.
C) A stock split decreases the market price of the stock.
D) A stock split is an increase in the number of authorized, issued, and outstanding shares of stock.
Correct Answer:
Verified
Q14: The entry to record the distribution of
Q15: The amount of owners' equity attributable to
Q16: If 3,000 shares of $5 par common
Q17: The price the corporation agrees to pay
Q18: The entry to record the declaration of
Q20: Double taxation means that the:
A)corporation pays tax
Q21: The payment of a cash dividend previously
Q22: Monteverde Company repurchased 1,000 shares of its
Q23: Which of the following is a disadvantage
Q24: Treasury stock is a n):
A)contra- equity account.
B)liability
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