The Effect of a Stock Dividend Is to

question 139

Multiple Choice

The effect of a stock dividend is to

• A) decrease total assets and stockholders' equity.
• B) change the composition of stockholders' equity.
• C) decrease total assets and total liabilities.
• D) increase the book value per share of common stock.

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Definitions:

Information Flow

The movement or exchange of data, knowledge, and insights among people, processes, or systems within or across organizations.

Outsourcing

The business practice of hiring a party outside a company to perform services or create goods that were traditionally performed in-house by the company's own employees and staff.

Obtaining Materials

The process of sourcing and procuring the raw materials needed for production or manufacturing.

Outsourcing

The practice of hiring third-party vendors to perform services or produce goods that were previously done internally, often to reduce costs.