A Stock Dividend Will Not Affect Which of the Following

question 103

Multiple Choice

A stock dividend will not affect which of the following balance sheet items?

• A)Total assets
• B)Retained earnings
• C)Paid in excess
• D)Common stock

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Definitions:

Credit Terms

The conditions under which credit is extended by a seller to a buyer, including repayment schedule, interest rates, and due dates.

Discount Period

A set time frame during which a buyer can pay less than the full amount due, usually as incentive for early payment to the seller.

Cash Discount

is a reduction in the invoice price offered by sellers to buyers as an incentive to encourage prompt payment of their accounts payable.

Customer Refunds Payable

Liabilities owed to customers for products returned or services not satisfactorily rendered.