Which One of the Following Events Would Not Require a Journal

question 177

Multiple Choice

Which one of the following events would not require a journal entry on a corporation's books?

• A)2-for-1 stock split.
• B)100% stock dividend.
• C)2% stock dividend.
• D)$1 per share cash dividend.

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Definitions:

Internal Growth Rate

The maximum rate at which a company can expand its operations using only internally generated revenue and without resorting to external financing.

Equity Multiplier

A financial ratio that measures the portion of a company's assets financed by stockholders' equity, reflecting financial leverage.

Cash Dividends

Payments made by a company out of its profits to its shareholders, usually on a periodic basis.

Percentage of Sales

An approach used to forecast the future financials of a company based on its current sales data and growth assumptions, commonly used in financial modeling.