EBK ACCOUNTING PRINCIPLES
13th Edition
ISBN: 9781119411017
Author: Weygandt
Publisher: WILEY
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Chapter 14, Problem 8Q
To determine
Stock dividend: When a firm has shortage of cash it distributes the dividend to the shareholders in the form of additional shares rather than paying dividend in cash. This payment of the firm is called a stock dividend.
Stock split: When a firm decides to issue more shares to the existing shareholders in order to increase the number of outstanding shares, it is termed as stock split. After a split stock price gets reduced as the number of outstanding shares increases.
To determine: The difference between the effects of stock dividend and stock split.
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Financial Accounting
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