What would be the effect of a stock split on the accounts of the company?
A) an increase in current liabilities upon declaration
B) an increase in share capital upon declaration
C) a decrease in retained earnings upon declaration
D) an increase in the number of shares issued upon declaration

Question

Quizplus · Accepted Answer

A stock split increases the number of shares issued and outstanding without changing the total value of all shares, affecting only the distribution of shares, not the company's equity structure or liabilities.

What Would Be the Effect of a Stock Split on the Accounts