The Declaration and Issuance of a Stock Dividend Larger Than

question 94

Multiple Choice

The declaration and issuance of a stock dividend larger than 25% of the shares previously outstanding

• A) increases common stock outstanding and increases total stockholders' equity.
• B) decreases retained earnings but does not change total stockholders' equity.
• C) may increase or decrease paid-in capital in excess of par but does not change total stockholders' equity.
• D) increases retained earnings and increases total stockholders' equity.

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Definitions:

Exchange Rates

The equivalent worth of one currency in another during exchange.

Exchange Gain/Loss

The gain or loss resulting from the fluctuation in exchange rates affecting the value of transactions in foreign currencies.

Acquisition Differential

The difference between the purchase price of a company and the fair market value of its identifiable net assets.

Exchange Rates

The rate for transforming one currency into another.