A Corporation's Distribution of Additional Shares of Its Own Stock

question 106

Multiple Choice

A corporation's distribution of additional shares of its own stock to its stockholders without the receipt of any payment in return is called a:

• A)Stock dividend.
• B)Stock subscription.
• C)Premium on stock.
• D)Discount on stock.
• E)Treasury stock.

Understand the concepts and definitions of financial instruments, including financial assets, financial liabilities, and equity instruments.

Identify and classify different types of financial instruments and transactions.

Grasp the principles behind the initial recognition and measurement of financial instruments.

Learn the impact of financial instruments on financial statements, including presentation and disclosure requirements.

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Definitions:

Accuracy

The degree to which a measurement, calculation, or specification conforms to the correct value or a standard.

Politic

Strategies and activities associated with governance, decision-making within groups or organizations, or the exercise of authority and influence.

Aphasia

A condition characterized by the loss of the ability to understand or express speech, caused by brain damage.

Grammatical Devices

Tools used in languages to convey meaning, adhere to syntactic rules, and modify structure, such as tense, punctuation, and conjunctions.