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.

Understand the computation and significance of absorption rates in standard costing.

Analyze production efficiency through direct labor hour variances.

Interpret sales mix and sales quantity variances for decision-making.

Understand the role and calculation of budgeted and standard volumes in cost accounting.

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Definitions:

Fixed Policy Rules

Strategies or regulations in economic policy that remain constant and do not change in response to fluctuations in the macroeconomic environment.

Discretionary Macro Policy

Economic policies based on the judgement of policymakers rather than set rules, involving adjustments in government spending and taxes to influence the economy.

Inflation

The increase in the average price of goods and services over time, detracting from the effective purchasing capacity.

Recession

A recession is a period of economic decline across a broad spectrum of the economy lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.