The Effect of a Stock Dividend Is to Reduce

question 13

Multiple Choice

The effect of a stock dividend is to reduce:

• A)retained earnings and the par value of each share.
• B)total stockholders' equity.
• C)retained earnings and increase legal capital.
• D)total assets and reduce total stockholders' equity.

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Definitions:

Grant Superior Title

The process of transferring a higher quality or clearer title to property, often used to resolve issues or disputes regarding property ownership.

Constructive Eviction

In landlord–tenant law, a breach of duty by the landlord that makes the premises uninhabitable or otherwise deprives the tenant of the benefit of the lease and gives rise to the tenant’s right to vacate the property and terminate the lease.

Commercial Property

Real estate property that is used for business activities.

Reasonable Security

Measures taken to protect against foreseeable threats to safety and security.