Which Statement About "Stock Dividends" Is Correct

question 67

Multiple Choice

Which statement about "stock dividends" is correct?

• A)Only a memo entry is needed for this transaction.
• B)No entry is needed in the accounting records.
• C)A journal entry is needed for this transaction.
• D)This is the same as a stock split for accounting purposes.

Understand how a company's strategy impacts human resource decisions and planning.

Understand the relationship between utility maximization and consumption choices when the price of goods changes.

Apply the concept of diminishing marginal utility to budget allocation decisions involving multiple goods.

Calculate the optimal consumption bundle using the marginal utility per dollar spent.

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Definitions:

Negligible Residual Value

A term used to describe an asset's end-of-life value that is considered to be insignificantly small or practically zero.

Cash Payback Period

The cash payback period is the duration of time it takes for an investment to generate enough cash flow to recover its original cost.

Residual Value

The estimated salvage value of an asset at the end of its useful life.

Present Value Factors

Multipliers used to calculate the present value of a future amount of money or stream of cash flows.