Question: A corporation may use stock splits and stock dividends to

A corporation may use stock splits and stock dividends to change the number of shares of its stock outstanding.

Required:
a. What is meant by a stock split effected in the form of a dividend?
b. From an accounting viewpoint, explain how the stock split effected in the form of a dividend differs from an ordinary stock dividend.
c. How should a stock dividend that has been declared but not yet issued be classified in a statement of financial position? Why?


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  • CreatedDecember 17, 2014
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