Identify the Effect the Declaration and Distribution of a Stock

question 119

Multiple Choice

Identify the effect the declaration and distribution of a stock dividend has on the par value per share. Par Value per Share

• A) Increase
• B) Decrease
• C) Increase or decrease
• D) No effect

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Definitions:

Job Costing System

An accounting method used to track costs and profitability of individual jobs or projects, allowing for precise control and reporting of expenses.

Process Costing System

A method of accounting that traces and accumulates direct costs, and allocates indirect costs of a manufacturing process, to products by averaging them over units of output.

Downstream Costs

Costs incurred after the production phase, such as distribution and marketing expenses, as well as after-sales service costs.

Upstream Costs

Expenses incurred in the early stages of the production process, which can include exploration, development, and extraction in the oil and gas industry.