The Declaration and Issuance of a Common Stock Dividend

question 103

Multiple Choice

The declaration and issuance of a common stock dividend:

• A)Does not change the internal content of retained earnings.
• B)Decreases total owners' equity and increases the related common stock account.
• C)Decreases assets and decreases total owner's equity.
• D)Does not change assets, liabilities or total owners' equity.

---

Definitions:

Domestic Exchange Equation

An economic formula reflecting the relationship between the monetary supply, the velocity of money, the price level, and the number of transactions within a domestic economy.

Germany

A country in Central Europe, known for its rich history, culture, and as a major economic and political power in the European continent.

Opportunity Cost

The price paid when you choose one option over another, effectively missing out on what the second best choice would have offered.

Italy

A country in Southern Europe known for its rich history, culture, and contributions to art, science, fashion, and cuisine.