How many of these statements are true? The difference between a share split and a share dividend bonus issue)is that a bonus issue,but not a share split:
i.Increases the share capital and reduces the retained earnings
ii.Reduces the market price of the shares
iii.Requires accounting entries to be made in the ledger

Question

Quizplus · Accepted Answer

Statement i is true because a bonus issue increases the share capital, and reducing the retained earnings is one way for the company to fund the bonus issue. 
Statement iii is also true because accounting entries need to be made to reflect the increase in the share capital and reduction in retained earnings. 
Statement ii is false because a bonus issue typically does not affect the market price of the shares, while a share split may lead to a lower market price per share. Therefore, choice D is the correct answer because it includes the two true statements.

How Many of These Statements Are True? the Difference Between