If a Firm Has Retained Earnings of $10 Million, a Common

question 21

Multiple Choice

If a firm has retained earnings of $10 million, a common shares account of $15 million, and additional paid-in-capital of $5 million, how much would be transferred in (or out) of these accounts in response to a 50 percent stock dividend, respectively?

• A) − 100 percent, 0 percent, + 100 percent
• B) − 100 percent, + 100 percent, 0 percent
• C) − 100 percent, + 50 percent, + 50 percent
• D) − 50 percent, + 50 percent, + 50 percent

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Definitions:

Cross Tabulation

A method used to analyze and display the relationship between two or more categorical variables in the form of a table.

Frequencies

Frequencies in statistics represent the number of times a particular value or category occurs within a data set.

Correlation

The relationship or association between two or more variables, which can be positive, negative, or zero.

Granular

Describes data or information that is highly detailed or broken down into smaller, finer pieces, allowing for deeper analysis or understanding.