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Indicate Whether the Following Actions Would (+) Increase, (?) Decrease

question 114

Essay

Indicate whether the following actions would (+) increase, (?) decrease, or (0) not affect a company's total assets, liabilities, and stockholders' equity.
?  Assets Liabilities  Stockholders’ Equity  (1) Declaring a cash dividend(2) Paying the cash dividend declared in (1) (3) Declaring a stock dividend (4) Issuing stock certificates for the stock  dividend declared in (3) \begin{array}{lrr}&\text { Assets}&\text { Liabilities }&\text { Stockholders' Equity }\\ \text { (1) Declaring a cash dividend} &\\ \text {(2) Paying the cash dividend declared in (1) } &\\ \text {(3) Declaring a stock dividend } &\\ \text {(4) Issuing stock certificates for the stock } &\\ \text { dividend declared in (3) } &\\\end{array}

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Definitions:

Market Failure

A situation in which the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss.

Allocated Efficiently

Refers to the optimal distribution of resources and goods in a way that maximizes the welfare or utility of consumers.

External Costs

Expenses that a business or economic activity imposes on unrelated third parties or the environment, which are not reflected in market prices.

External Benefits

External Benefits are positive effects of a production or consumption activity on third parties who did not directly participate in the economic transaction.

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