Which of the Following Is True with Regards to a Stock

question 47

Multiple Choice

Which of the following is true with regards to a stock dividend?

• A) It results in a transfer of retained earnings to contributed capital.
• B) It increases the number of shares outstanding and involves a pro rata reduction in the par value per share.
• C) It is accounted for in the same manner as a stock split.
• D) It does not require a journal entry.

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Definitions:

Genomic Imprinting

A genetic phenomenon by which certain genes are expressed in a parent-of-origin-specific manner.

Progeny

The offspring or descendants of an organism.

Genotype

The genetic constitution of an organism, determining its specific traits and potential offspring characteristics.

Albinism

A group of genetic disorders characterized by little or no production of the pigment melanin, affecting the color of the skin, hair, and eyes.