A Stock Dividend Usually Causes a Transfer of Retained Earnings

question 14

True/False

A stock dividend usually causes a transfer of retained earnings to share capital, but not a decrease in the assets of the issuing corporation.

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Definitions:

Extinct

A term describing a species, family, or larger group of organisms that no longer exists anywhere on Earth.

Conditioned Response

A response acquired through learning to a stimulus that was once neutral but has been frequently paired with a stimulus that elicits an automatic response.

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a pause.

Stray Dog

A dog that lives on the streets and is not owned or cared for by a specific person.