If a Firm Has Retained Earnings of $4 Million, a Common

question 69

Multiple Choice

If a firm has retained earnings of $4 million, a common shares account of $7 million, and additional paid-in-capital of $3 million, how much would be transferred in (or out) of these accounts in response to a 20 percent stock dividend, respectively?

• A) − 20 percent, 0 percent, + 20 percent
• B) − 20 percent, + 20 percent, 0 percent
• C) − 50 percent, + 20 percent, + 20 percent
• D) − 50 percent, + 25 percent, + 25 percent

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Definitions:

Genetic Material

Molecules within cells that carry genetic information, primarily DNA or RNA, necessary for heredity and biological functions.

Thermus Aquaticus

A bacterium found in hot springs, known for its heat-tolerant enzyme used in PCR (Polymerase Chain Reaction) technology.

Pathogenic

Pertaining to an organism or substance that causes disease.

Vibrio Cholerae

The bacterium that causes cholera, a severe diarrheal illness, through the production of a toxin that affects the absorption of water in the small intestine.