All Else Equal,a Stock Dividend Will ________ the Number of Shares

question 8

Multiple Choice

All else equal,a stock dividend will ________ the number of shares outstanding and ________ the value per share.

• A)increase; increase
• B)increase; decrease
• C)not change; increase
• D)decrease; increase
• E)decrease; decrease

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Definitions:

Consuming Goods

Goods that are used by consumers and are typically expended when used, opposed to durable goods which are designed to last for a prolonged period.

Generating Revenues

Generating revenues refers to the process through which a business earns money by selling goods or providing services.

Expenses

Outflows or other using up of assets or incurrences of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity’s ongoing major operations.

Increase Side

In accounting, it refers to the side of a ledger account (debit or credit) where increases are recorded, depending on the nature of the account.