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Stock splits and stock dividends

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Stock Splits and Stock Dividends

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

1. What is meant by a stock split effected in the form of a dividend?

2. From an accounting viewpoint, explain how the stock split effected in the form of a dividend differs from an ordinary stock dividend.

3. How should a stock dividend that has been declared but not yet issued be classified in a statement of financial position? Why?"

Reference no: EM133505748

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