Question

A stock split: increases the total value of the common stock account. decreases the value of the retained earnings account. does not affect the total value of any of the equity accounts. increases the value of the capital in excess of par account. decreases the total owners' equity on the balance sheet.

Answer 1

Answer:

decreases the total owners' equity on the balance sheet.

Explanation:

Company's board of director decisions to increase the number of outstanding shares, by issuing more shares to current share holders : is referred to as Stock Split.

Stock Split decision effects the stock prices. It leads to decreased stock prices, as the number of outstanding shares has increased. The fall in price of stock : leads to reduced value of share capital, which is a part of Equity. So, it finally decreases the total owners equity on balance sheet