Which of the following actions will increase the balance in the Common stock account?

Question

Quizplus · Accepted Answer

A stock dividend increases the number of shares outstanding and reduces the value per share, but it does not affect the total value of the common stock account. Therefore, the balance in the common stock account increases. A cash dividend decreases the retained earnings and does not affect the common stock account. A stock split increases the number of shares outstanding and reduces the value per share but also does not affect the total value of the common stock account. Purchase of treasury stock decreases the common stock account.

Which of the Following Actions Will Increase the Balance in the Common