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

Question

Quizplus · Accepted Answer

Both a 2-for-1 stock split and a 100% stock dividend double the number of shares outstanding. However, a stock split does not affect contributed capital in excess of par on common shares, while a stock dividend does. Neither affects par value or causes a significant decrease in the common share account. The reduction in retained earnings may differ depending on the specifics of the company's financials.

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