Which of the following statements is false? Stock splits reallocate amounts between retained earnings and contributed capital accounts. Both stock splits and stock dividends increase the common shares issued. Both stock splits and stock dividends increase the common shares outstanding. Both stock splits and stock dividends have the impact of reducing the market price of the stock. Solution Answer Should be (A) Because, Stock split increases the number of shares outstanding without effecting the retained earnings balance Thanks .

1. Which of the following statements is false?
Stock splits reallocate amounts between retained earnings and contributed capital accounts.
Both stock splits and stock dividends increase the common shares issued.
Both stock splits and stock dividends increase the common shares outstanding.
Both stock splits and stock dividends have the impact of reducing the market price of the stock.
Stock splits reallocate amounts between retained earnings and contributed capital accounts.
Both stock splits and stock dividends increase the common shares issued.
Both stock splits and stock dividends increase the common shares outstanding.
Both stock splits and stock dividends have the impact of reducing the market price of the stock.
Solution
Answer Should be (A)
Because, Stock split increases the number of shares outstanding without effecting the retained
earnings balance
Thanks