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How Many of These Statements Are True? the Difference Between

Question 26

Multiple Choice

How many of these statements are true? The difference between a share split and a share dividend (bonus issue) is that a bonus issue, but not a share split:
i. increases the share capital and reduces the retained earnings.
ii. reduces the market price of the shares.
iii. requires accounting entries to be made in the ledger.


A) i.
B) ii, iii
C) i, ii
D) i, iii

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