A Stock Dividend

question 80

Multiple Choice

A stock dividend:

• A)is accounted for like a stock split.
• B)will reduce stockholders' equity like a cash dividend does.
• C)will not change any of the accounts within stockholders' equity.
• D)will reduce retained earnings like a cash dividend does.

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Definitions:

Equipment Loans

Financial products designed specifically to fund the purchase of machinery and equipment needed for business operations.

Debt-to-Equity Ratios

A financial metric used to assess a company's financial leverage, calculated by dividing its total liabilities by stockholders' equity.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for.

Accounts Payable

An accounting term for the amount of money a company owes to its creditors for supplies, services, or goods purchased on credit.