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:

Body Cavities

Hollow spaces within the human body that house organs and provide protection, support, and space for organ development and function.

Thoracic Cavity

The part of the body enclosed by the ribs, sternum, and vertebral column, containing the lungs and heart.

Body Cavities

Spaces within the body that contain vital organs, such as the thoracic, abdominal, and cranial cavities.

Parietal Peritoneum

The portion of the peritoneum that lines the abdominal and pelvic cavity walls, as opposed to covering the organs.