Which of the Following Is True of a Stock Dividend

question 137

Multiple Choice

Which of the following is true of a stock dividend?

• A)It is a liability on the balance sheet.
• B)The decision to declare a stock dividend resides with the shareholders.
• C)Transfers a portion of equity from retained earnings to a cash reserve account.
• D)Does not affect total equity,but transfer amounts between the components of equity.
• E)Reduces a corporation's assets and stockholders' equity.

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