Which of the Following Is True About a Stock Dividend

question 114

Multiple Choice

Which of the following is true about a stock dividend.

• A)Assets decrease and owners' equity decreases
• B)Assets increase and Liabilities increase
• C)Contributed Capital increases and Retained earnings decreases
• D)Liabilities decrease and Contributed Capital Increases

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Definitions:

Production Volume

The quantity of products that a manufacturing system produces within a specific period of time.

Direct Labor Rate

The cost per hour for labor directly involved in producing goods or providing services, not including indirect costs like administration.

Participative Budgeting

A budgeting process where employees at all levels are involved in the decision-making process regarding the budget.

Capital Expenditures Budget

A financial plan for a company's planned investments in long-term assets and projects.