When a Stock Dividend Is Paid Out

question 178

Multiple Choice

When a stock dividend is paid out,

• A)the total value of an individual's holdings will increase.
• B)each current shareholder will receive more shares of stock.
• C)the total value of the corporation will increase.
• D)each shareholder will own a larger percentage of the corporation.

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Definitions:

Weighted Average Cost

A method of inventory valuation that calculates the cost of goods sold and ending inventory based on the average cost of all units available for sale.

Inventory Balance

The total value of a company's goods and materials held in stock, as recorded on the balance sheet.

Weighted Average Cost

A method of valuing inventory and cost of goods sold that considers the cost of each item in proportion to its quantity.

Perpetual Inventory

Perpetual inventory is a system that continuously updates inventory records to reflect sales, purchases, and inventory levels in real-time.