The board of directors announces a 2-for-1 stock split on 20,000 outstanding shares of $15.00 par common stock. Immediately after the stock split, the

Question

A. outstanding shares increase to 40,000.
B. outstanding shares decrease to 10,000.
C. par value of the stock remains the same.
D. par value of the stock increases to $30 per share.

A stockholder’s ownership percentage in the stock of a corporation ______ upon the distribution of stock dividend.
A. increases
B. decreases
C. can increase or decrease depending on the type of stock dividend
D. will stay the same
Restrictions on retained earnings
A. are usually reported in the notes to the financial statements.
B. happen frequently.
C. are disclosed on the income statement.
D. reduce total assets on the balance sheet.