Which of the Following Correctly Describes the Effect of Mogul

question 54

Multiple Choice

Which of the following correctly describes the effect of Mogul Company declaring and distributing a 10% common stock dividend?

• A)Mogul's current ratio decreased.
• B)Mogul's return on equity ratio decreased.
• C)Mogul's debt-to-equity ratio remained the same.
• D)Mogul's return on assets decreaseD.Stock dividends do not affect debt or total stockholders' equity.Therefore, the debt-to-equity ratio remained the same.

---

Definitions:

Australian Dollar

The currency of Australia, represented as AUD, and is a popular currency in financial markets.

Financial Books

Records and documents that capture all financial transactions of a business, facilitating the preparation of financial statements.

Canadian Dollar

The official currency of Canada, often represented by the symbol CAD or C$.

Translation Gain

Profit or gain recognized from converting foreign currency transactions into the functional currency of a business during the consolidation of financial statements.