If a Subsidiary Issues a Stock Dividend, Which of the Following

question 38

Multiple Choice

If a subsidiary issues a stock dividend, which of the following statements is true?

• A) Investment in subsidiary on the parent's books will increase.
• B) Investment in subsidiary on the parent's books will decrease.
• C) Additional paid-in capital on the parent's books will increase.
• D) Additional paid-in capital on the parent's books will decrease.
• E) No adjustment is necessary.

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Definitions:

Critical Thinking

The process of actively analyzing, assessing, synthesizing, evaluating, and reflecting on information to make informed judgments.

Nursing Process

A systematic approach used by nurses to plan and provide individualized patient care, typically involving assessment, diagnosis, planning, implementation, and evaluation.

Open-Mindedness

The willingness to consider new ideas, perspectives, and possibilities without preconceived judgments, fostering creativity and adaptability.

Scientific Process

A methodical approach to inquiry that involves observation, hypothesis formation, experimentation, and conclusion to acquire new knowledge.