The Declaration and Issuance of a Stock Dividend on Shares

question 95

Multiple Choice

The declaration and issuance of a stock dividend on shares of common stock:

• A) Has no effect on assets, liabilities, or total shareholders' equity.
• B) Decreases total shareholders' equity and increases common stock.
• C) Decreases assets and decreases total shareholders' equity.
• D) Does not change retained earnings or paid-in capital.

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Definitions:

Sensitization

A process by which a person becomes increasingly responsive or sensitive to a stimulus after repeated exposure to it.

Higher-order Conditioning

A form of learning in which a stimulus is first made meaningful or significant through classical conditioning and then that stimulus is used as a base for learning about additional stimuli.

Sensitization

An increased reaction to a stimulus following repeated exposure to it, often leading to heightened responsiveness to other stimuli.

Higher-order Conditioning

A form of conditioning in which a stimulus that was previously neutral is paired with a conditioned stimulus to produce the same conditioned response.