The Effect of a Stock Dividend Is to

question 139

Multiple Choice

The effect of a stock dividend is to

• A) decrease total assets and stockholders' equity.
• B) change the composition of stockholders' equity.
• C) decrease total assets and total liabilities.
• D) increase the book value per share of common stock.

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Definitions:

Fibrous

Composed of or characterized by the presence of fibers.

Inarticulate

Lacking the ability to express oneself clearly or effectively in speech or writing.

Epiphyseal Plate

Site at which bone growth in length occurs; located between the epiphysis and diaphysis of a long bone; area of hyaline cartilage where cartilage growth is followed by endochondral ossification; also called metaphysis or growth plate.

Synchondrosis

Synchondrosis is a type of joint where bones are joined by hyaline cartilage, allowing for growth or movement, as seen in the growth plates of children.