When a Corporation Declares a Stock Dividend, Which of the Following

question 75

Multiple Choice

When a corporation declares a stock dividend, which of the following is true?

• A) Cash decreases.
• B) Equity remains the same.
• C) Equity decreases.
• D) Retained earnings increases.

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Definitions:

Cognitive Dissonance

The psychological discomfort experienced by someone who holds two or more contradictory beliefs, ideas, or values at the same time.

Attribution-helplessness

A psychological phenomenon where individuals attribute their inability to control events to their own lack of ability, leading to feelings of helplessness.

Cognitive Triad

A concept in cognitive therapy that describes a pattern of thinking involving negative views about the self, the world, and the future.

Object Relations

A theory in psychoanalysis focusing on the relationships between individuals and the external objects (often other people) that represent significant others in one’s life.