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:

Mental Representations

The internal images, ideas, concepts, and thoughts that represent one's external reality.

Skinner

An influential American psychologist best known for his work in behaviorism and the development of the theory of operant conditioning.

Recognition

The cognitive process of identifying previously encountered information from a group of choices.

Cognitive Process

The cognitive process of gaining knowledge and comprehension via thinking, experiencing, and sensory perception.