The Declaration and Issuance of a Share Dividend

question 6

Multiple Choice

The declaration and issuance of a share dividend

• A)increases ordinary shares outstanding and increases total equity.
• B)decreases retained earnings but does not change total equity.
• C)may increase share premium but does not change total equity.
• D)increases retained earnings and increases total equity.

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Definitions:

Hormone

A chemical substance produced in the body that influences physiological activity by being transported in tissue fluids such as blood to stimulate specific cells or tissues into action.

Endorphins

Neurotransmitters produced by the brain that act as natural painkillers and are also associated with feelings of pleasure or euphoria.

Neurotransmitters

Chemical messengers that transmit signals across a synapse from one neuron to another in the brain and nervous system.

Norepinephrine

A neurotransmitter involved in arousal and the regulation of blood pressure, mood, and sleep cycles.