When a Share Dividend of 20 000 $1 Shares, Is

question 62

Multiple Choice

When a share dividend of 20 000 $1 shares, is declared and paid, the effect on total equity in the company balance sheet is a(n) :

• A) increase in share capital of $20 000 and a decrease in reserves of $20 000, i.e. no change in total equity.
• B) increase in total equity of $20 000.
• C) decrease in total equity of $20 000.
• D) increase in the number of issued shares and a decrease in the book value of each share.

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Definitions:

Reasonable Notice

Notification given within a time frame that is considered fair and adequate under the circumstances.

Wrongful Dismissal

Termination of an employee's contract of employment in violation of the law or contractual terms.

Severance Pay

Financial compensation offered to employees by employers upon the termination of employment, often related to layoffs or job elimination.

Serious Disruption

A significant interruption or disturbance to an expected sequence of events that can impact operations, services, or activities adversely.