A Stock Dividend

question 84

Multiple Choice

A stock dividend:

• A) Results in a transfer of retained earnings to capital in excess of par.
• B) Increases the number of shares outstanding and involves a pro rata reduction in the par value per share.
• C)Is accounted for in exactly the same manner as a stock split.
• D)Results in a transfer of retained earnings to capital in excess of par and also increases the number of shares outstanding and involves a pro rata reduction in the par value per share.