How Would the Declaration and Subsequent Issuance of a 10

question 2

Multiple Choice

How would the declaration and subsequent issuance of a 10 percent stock dividend by the issuer affect each of the following when the market value of the shares exceeds the par value of the stock? Common Stock Additional Paid-in Capital

• A) No effect No effect
• B) No effect Increase
• C) Increase No effect
• D) Increase Increase

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Definitions:

Rule Of Requirements

A principle in contract law that dictates a seller must supply only the quantity of goods that a buyer requires, no less and no more.

Triple

Multiplication by three or having three parts; in some contexts, it may refer to a rating, niveau, or layer that is three times stronger, higher, or more intense.

Supply

The total amount of a product or service available for purchase at any given time.

Statute Of Frauds

A rule of law that mandates specific kinds of agreements must be documented and signed to have legal force.