The Declaration of a Stock Dividend Will

question 72

Multiple Choice

The declaration of a stock dividend will

• A) increase share capital.
• B) change total shareholders' equity.
• C) increase total liabilities.
• D) increase total assets.

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue is contributing to fixed costs and profits.

Unsold Units

Unsold units refer to products that have been produced or acquired by a business but have not yet been sold to customers.

Variable Costing

A costing method that only includes variable production costs—costs that change with the level of output—in product pricing.

Unsold Units

Inventory items that have not been sold during a specific period, representing stock still available for sale.