Which of the Following Describes, in Part, How the Declaration

question 130

Multiple Choice

Which of the following describes, in part, how the declaration of a stock dividend affects the financial statements?

• A)Decreases total assets
• B)Increases total stockholders' equity
• C)Decreases paid-in capital in excess of par value-common
• D)No effect on total stockholders' equity

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Definitions:

Expenses

Amounts used to generate revenue; assets used up or services consumed in the process of generating revenues.

Net Discounted Cash Flow

The value of all future cash flows of a project or investment after being discounted to the present value, reflecting both time and risk.

Cash Flowing

The movement of money in and out of a business, representing its operational liquidity.

Expenses

Costs incurred during the operation of a business that are necessary for generating revenue, such as rent, salaries, utilities, and materials.