The directors of The Dress Shoppe are considering declaring either a stock dividend or a stock split.

Question:

The directors of The Dress Shoppe are considering declaring either a stock or a stock split. They have asked you to explain the difference between a stock and a stock split and the accounting for a small stock versus a large stock

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...