Which of the Following Is True with Regard to a Stock

question 70

Multiple Choice

Which of the following is true with regard to a stock dividend?

• A) It results in a transfer of retained earnings to contributed capital.
• B) It does not require a journal entry.
• C) It is accounted for in exactly the same manner as a stock split.
• D) It increases the number of shares outstanding and involves a pro rata reduction in the par value per share.

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Definitions:

Decay

The gradual deterioration or loss of effectiveness, quality, or functioning over time.

Forgetting

The loss of ability to recall or recognize something that was previously known, a common process in memory function.

Von Restorff Effect

A psychological phenomenon where noticeably different items are more likely to be remembered than common ones.

Recall

The ability to remember previously experienced events or information, often measured in psychological tests or assessments.