Stock splits and stock dividends have the following effects on retained earnings:

Question

Quizplus · Accepted Answer

Stock splits and stock dividends do not have any effect on retained earnings. Retained earnings are the portion of a company's profits that are kept by the company for reinvestment in the business or distribution to shareholders as dividends. Stock splits and stock dividends only impact the number of shares outstanding and the stock's par value, but do not affect the company's profits or retained earnings.

Stock Splits and Stock Dividends Have the Following Effects on Retained