A Stock Dividend

question 87

Multiple Choice

A stock dividend:

• A) is the same thing as a stock split.
• B) will reduce stockholders' equity just like a cash dividend.
• C) will not change any of the accounts within stockholders' equity.
• D) will reduce retained earnings just like a cash dividend.

Recognize the potential for banks and customers to contractually allocate risks of forgery.

Understand what it means when a bank certifies a check and its implications.

Identify the use and guarantees associated with cashier's checks.

Grasp the legal responsibilities of banks in cases of forged drawer signatures.

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Definitions:

Investments

The allocation of resources, such as time, money, or effort, in the expectation of generating an income or profit.

Market Value

The current price at which an asset or company could be bought or sold in the market.

GDP

Gross Domestic Product, the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Final Goods

Products that are purchased for consumption by the end user and are not intended to be resold or used in the production of other goods.