Asked by karamjeet singh on Jul 15, 2024
Verified
Rienstra Electronics has just declared a 2 for 1 stock split. The current price of the stock is above the par value. Which of the following account balances will be affected by the stock split?
A) Common stock
B) Paid in Excess
C) Retained Earnings
D) All of these account balances will be affected.
E) None of these account balances will be affected.
Common Stock
A form of corporate equity ownership, a type of security representing an ownership share in a company.
Paid in Excess
Funds that are received by a company over and above the par value of its stock; typically recorded as part of the additional paid-in capital on the balance sheet.
Retained Earnings
Profits that a company keeps or retains rather than distributing to shareholders as dividends, often used for reinvestment.
- Gain insights into how stock splits and dividends affect corporate ledgers and shareholder equity.
Verified Answer
Learning Objectives
- Gain insights into how stock splits and dividends affect corporate ledgers and shareholder equity.
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