Stock splits and stock dividends may be used by a corporation to change the number of shares

Question:

Stock splits and stock dividends may be used by a corporation to change the number of shares of its stock outstanding.

(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?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...