When a Stock Dividend Is Declared and Issued

question 26

Multiple Choice

When a stock dividend is declared and issued:

• A)total paid-in capital does not change.
• B)total stockholders' equity does not change.
• C)retained earnings is normally decreased by the par value of the shares issued in the dividend.
• D)total paid-in capital is decreased by the market value of the shares issued in the dividend.

---

Definitions:

Blood Vessels

Tubular structures in the circulatory system through which blood flows, including arteries, veins, and capillaries, crucial for transporting nutrients, oxygen, and waste materials.

Feathers

The unique, complex, keratinous structures growing from the skin of birds and some dinosaurs, having diverse functions including flight, insulation, and display.

Endotherms

Endotherms are organisms that maintain their body temperature through internal metabolic processes, regardless of external environmental temperatures.

Physiological Mechanisms

The processes and functions of living organisms or their parts, including physical and chemical processes that contribute to vitality.