If a Stockholder Receives a Dividend That Reduces Retained Earnings

question 121

Multiple Choice

If a stockholder receives a dividend that reduces retained earnings by the fair value of the stock the stockholder has received a

• A) large stock dividend.
• B) cash dividend.
• C) contingent dividend.
• D) small stock dividend.

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Definitions:

Secondary Sex Characteristics

The visible signs of sexual maturity that do not directly involve the sex organs.

Primary Sex Characteristics

Characteristics associated with the development of the organs and structures of the body that directly relate to reproduction.

Sexual Maturity

The stage of development where an individual is physiologically capable of reproductive activity.

Young Old

A demographic term referring to older adults typically aged 65 to 74 who are often in relatively good health and active.