1. Statement 1: A split up increases the number of shares held and decreases the cost per share. Statement 2: A stock dividend is recorded as a credit to dividend income. a. Only statement 1 is true b. Only statement 2 is true c. Both statements are true d. Both statements are false

1. Statement 1: A split up increases the number of shares held and decreases the cost per share. Statement 2: A stock dividend is recorded as a credit to dividend income. a. Only statement 1 is true b. Only statement 2 is true c. Both statements are true d. Both statements are false

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

1. Statement 1: A split up increases the number of shares held and decreases the cost per share. Statement 2: A stock dividend is recorded as a credit to dividend income.

a. Only statement 1 is true

b. Only statement 2 is true

c. Both statements are true

d. Both statements are false

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