A subsidiary split its stock 2 for 1. Which of the following statements is false?
A. A stock split does not affect the amount of net assets of the subsidiary.
B. A stock split does not affect parent and noncontrolling interest ownership percentages.
C. A stock split does not affect consolidation procedures.
D. A 2 for 1 stock split decreases the number of shares outstanding.
Answer:D
A subsidiary split its stock 2 for 1. Which of the following statements is false?
A. A stock split does not affect the amount of net assets of the subsidiary. B. A stock split does not affect parent and noncontrolling interest ownership percentages. C. A stock split does not affect consolidation procedures. D. A 2 for 1 stock split decreases the number of shares outstanding.