When Stock Dividends Are Distributed

question 42

Multiple Choice

When stock dividends are distributed,

• A)Common Stock Dividends Distributable is decreased.
• B)Retained earnings is decreased.
• C)Paid-in Capital in Excess of Par Value is debited if it is a small stock dividend.
• D)No entry is necessary if it is a large stock dividend.

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Definitions:

Positive Reinforcer

A stimulus that, when presented after a behavior, increases the likelihood of that behavior occurring in the future.

Unconditioned Response

A natural, automatic action or feeling that occurs in response to a stimulus without prior learning or conditioning.

Punisher

An entity or stimulus that decreases the likelihood of a behavior recurring by administering an adverse response or outcome.

Negative Reinforcer

A stimulus whose removal after a behavior increases the likelihood of that behavior occurring again in the future.