Which One of the Following Represents the Economic Effects of Declaring

question 86

Multiple Choice

Which one of the following represents the economic effects of declaring and issuing a stock dividend?

• A)Has no effect on total assets or total shareholders' equity
• B)Decreases the debt/equity ratio
• C)Decreases total shareholders' equity
• D)Increases the current ratio

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Definitions:

Carrying Value

The book value of an asset or liability on a company's balance sheet, calculated as the original cost minus depreciation or amortization.

Intra-Entity Inventory Sales

Sales transactions of inventory between divisions or subsidiaries within the same parent company, not affecting consolidated financial results until sold externally.

Upstream

In the context of oil and gas, it refers to exploration and production activities; in supply chain management, it relates to the procurement of raw materials.

Downstream

In business, refers to processes or activities that occur toward the end of a supply chain, often associated with the distribution and sale of finished products.