A 2-for-1 stock split is declared.In this case which of following statements is true?

Name: A 2-for-1 stock split is declared.In this case which of following statements is true?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A 2-for-1 stock split means that for each share of common stock held, the shareholder will receive an additional share. As a result, the number of common shares increases, while both the cash account and retained earnings remain unchanged. The common stock account also rises to reflect the increase in shares.

A 2-For-1 Stock Split Is Declared