What Would Be the Effect of a Stock Dividend on the Accounts

question 18

Multiple Choice

What would be the effect of a stock dividend on the accounts of the company?

• A) an increase in current liabilities upon declaration
• B) an increase in retained earnings upon declaration
• C) a decrease in retained earnings upon declaration
• D) an increase in shareholders' equity upon declaration

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Definitions:

Xiphoid Process

The xiphoid process is the small, cartilaginous projection at the lower end of the sternum, which becomes bony and ossified with age.

Manubrium

The upper portion of the sternum to which the clavicle and first ribs attach.

Sternum

The long, flat bone located in the center of the chest, connecting to the ribs via cartilage and forming the front part of the rib cage.

Humerus

The long bone in the upper arm that runs from the shoulder to the elbow, connecting with muscles and joints to facilitate arm movement.