Stock dividends and stock splits can be used to accomplish the same objective - impacting the trading price of shares. However, for financial reporting purposes they are accounted for differently.Explain the general accounting difference between stock dividends and stock splits. [Note: you do NOT need to discuss the valuation issue related to small vs. large stock dividends.]

37 Which of the following is true with regard to a 3-for-2 stock split?

A.

The proportion of the company that each stockholder owns increases

B.

Retained earnings is decreased

C.

Par value decreases

D.

Total stockholder equity increases

E.

The market price per share increases by roughly 50%