ACCOUNTING II (MUHASEBE II) - (İNGİLİZCE) Dersi Shareholders’ Equity: Retained Earnings and Dividends soru detayı:

PAYLAŞ:

SORU:

Define share splits.


CEVAP:

A share split is increasing the number of issued and outstanding shares of a corporation that results in decreasing of shares’ par value. share splits have no financial effect on any account balance. Thus no classical journal entry is required. It should be recorded in a memorandum entry that represents a note without any balance.