The Declaration and Distribution of a Stock Dividend Will

question 102

Multiple Choice

The declaration and distribution of a stock dividend will

• A)increase total shareholders' equity.
• B)increase total assets.
• C)decrease total assets.
• D)have no effect on total assets.

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Definitions:

Net Income

The total earnings of a company, subtracting total expenses from total revenue.

Break-Even Point

The stage where sales numbers or output equalize with total expenditures, creating a situation where there's no financial loss or gain.

Fixed Expenses

Costs that do not change with the level of production or sales over a certain period, such as rent, salaries, and insurance.

Selling Price

The amount of money charged for a product or service offered to customers.