A Large Stock Dividend

question 55

Multiple Choice

A large stock dividend:

• A)Results in a transfer of retained earnings to common stock and additional paid-in capital.
• B)Reduces the par value per share by the percentage of the additional shares issued.
• C)Is accounted for in exactly the same manner as a stock split.
• D)Results in a transfer of retained earnings to the common stock account.

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Definitions:

Supervising

The act of overseeing and directing the performance of tasks or activities, typically carried out by a person in a position of authority.

Conservation

In the context of developmental psychology, it refers to a child's ability to recognize that quantity remains the same despite changes in its shape or form.

Cross-Cultural Psychologist

A psychologist who studies the cultural factors that influence human behavior, beliefs, and emotions.

Piaget's Preoperational Level

A stage in Jean Piaget's theory of cognitive development, in which children from about 2 to 7 years of age demonstrate symbolic thinking but are not yet able to perform operations of logic.