How do stock splits and stock dividends impact Retained Earnings?
A)Stock splits increase Retained Earnings and stock dividends have no effect on Retained Earnings.
B)Stock splits have no effect on Retained Earnings and stock dividends decrease Retained Earnings.
C)Stock splits and stock dividends both decrease Retained Earnings.
D)Stock splits and stock dividends have no effect on Retained Earnings.

Question

Quizplus · Accepted Answer

Typically,a stock split involves revising the corporate charter to reduce the per-share par value of all authorized shares,so that the total par value across all shares is unchanged.Stock dividends are recorded by transferring an amount from Retained Earnings to contributed capital accounts.

How Do Stock Splits and Stock Dividends Impact Retained Earnings