Why does a stock split not require a journal entry in the company's financial records?

• A. Because it does not change the total value of equity, only the distribution of shares.
• B. Because it affects only the market price, not the financial statement account balances.
• C. Because it decreases the total equity by reducing the par value per share.
• D. Because it increases the total equity by issuing more shares to stockholders.

Answer: (A)