A ________ will increase the number of shares outstanding without affecting the book value of any of the owners' equity account values.

Question

Quizplus · Accepted Answer

A stock split is a process where the number of shares outstanding is increased while decreasing the value of each share. For example, a 2-for-1 stock split would double the number of outstanding shares while halving the value of each share. This does not affect the book value of the owners' equity account values because the total value of the equity account remains the same. Therefore, a stock split would be the correct answer.

A ________ Will Increase the Number of Shares Outstanding Without