The Effect of a Share Dividend Is to

question 212

Multiple Choice

The effect of a share dividend is to

• A) decrease total assets and equity.
• B) change the composition of equity.
• C) decrease total assets and total liabilities.
• D) increase the par value per share.

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Definitions:

Cash Today

Cash Today refers to the availability of funds or capital that can be immediately used or invested, as opposed to future earnings or receivables.

Rate of Return

The augmentation or diminution in an investment's valuation across a specified timeframe, articulated as a fraction of the initial investment expense.

Present Value

The present financial worth of expecting a sum of money or cash flows in the future, calculated by a certain rate of return.

Cash Flows

The cumulative amount of money circulating in and exiting a business, markedly influencing its liquidity position.