A Stock Dividend Will

question 27

Multiple Choice

A stock dividend will:

• A) increase the value of a share of stock.
• B) decrease the common stock account.
• C) decrease the retained earnings account.
• D) decrease the number of shares outstanding.

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Definitions:

Absorption Costing

An accounting method where all manufacturing costs, including both variable and fixed, are absorbed by the products.

Cost-plus Pricing

A pricing strategy where a fixed percentage or specified amount is added to the production cost to determine the sell price of a product or service.

Return on Investment

A profitability metric calculated as the net gain from an investment relative to its initial cost, used to measure the efficiency or profitability of an investment.

Selling Price

The sum a purchaser spends to acquire a good or service from a vendor.