A Feature Common to Both Stock Splits and Stock Dividends

question 151

Multiple Choice

A feature common to both stock splits and stock dividends is

• A) a transfer to earned capital of a corporation.
• B) that there is no effect on total stockholders' equity.
• C) an increase in total liabilities of a corporation.
• D) a reduction in the contributed capital of a corporation.

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Definitions:

Intelligence

The ability to learn, understand, and apply knowledge, solve problems, and adapt to new situations.

Certainty Effect

The phenomenon where decision-making is disproportionately influenced by outcomes that are certain, compared to those that are probable.

Definite Outcomes

Results or effects that are specific, clear, and unambiguous, often anticipated or expected in various contexts.

Temporal Discounting

A preference for immediate gratification over rewards that come later.