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Which of the Following Is a TRUE Statement

Question 4

Multiple Choice

Which of the following is a TRUE statement?


A) A share dividend will increase total shareholders' equity but a share split will not.
B) A share split will increase total shareholders' equity but a share dividend will not.
C) Neither a share split nor a share dividend will increase total shareholders' equity.
D) A share split will decrease retained earnings but a share dividend will not.

Correct Answer:

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