When a Company Declares a Stock Dividend, Which of the Following

question 11

Multiple Choice

When a company declares a stock dividend, which of the following occurs?

• A) A liability is created.
• B) Retained earnings is reduced.
• C) Stockholders' equity is decreased.
• D) The financing section of the statement of cash flows is decreased.

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Definitions:

Basics

Fundamental principles or essential facts concerning a subject.

Off-price Retailers

Retailers who provide high quality goods at lower prices by selling excess inventory or out-of-season items procured from wholesalers or manufacturers.

Stock Merchandise

Stock Merchandise refers to the inventory of goods that a retailer has on hand to sell to customers.

Service Retailer

A business that primarily sells services rather than tangible products, catering to customers' needs through the provision of expertise or activities.