What Is the Effect of Declaring a Stock Dividend on the Liabilities

question 68

Multiple Choice

What is the effect of declaring a stock dividend on the liabilities and stockholders' equity section of the balance sheet?

• A) A decrease in total liabilities and an increase in total stockholders' equity
• B) No effect on total liabilities and total stockholders' equity
• C) An increase in total liabilities and a decrease in total stockholders' equity
• D) No effect on total liabilities and a decrease in total stockholders' equity

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Definitions:

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Businesses that specialize in creating, planning, and handling advertising and sometimes other forms of promotion for their clients.

Reach Markets

The ability of a business to access and serve potential customers within a particular market or sector.

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Facilities equipped for the production and broadcasting of radio and television programs.

Advertising Agencies

Professional services firms that create, plan, and handle advertising and sometimes other forms of promotion and marketing for their clients.