From an Accounting Standpoint, Stock Dividends Involve a Transfer from the _____

question 18

Multiple Choice

From an accounting standpoint, stock dividends involve a transfer from the _____.

• A) common stock account
• B) cash account
• C) retained earnings account
• D) capital surplus account

---

Definitions:

Quick Ratio

A financial metric that measures a company's ability to meet its short-term obligations with its most liquid assets; also known as the acid-test ratio.

Current Assets

Assets that are expected to be converted into cash or used up within one year or one business cycle, whichever is longer.

Current Liabilities

Short-term financial obligations due within one year, such as accounts payable and short-term loans.

TIE

The Times Interest Earned (TIE) ratio is a financial metric that measures a company's ability to meet its debt obligations based on its current income.