An Increase in the Amount of Capital Per Worker Is

question 14

Multiple Choice

An increase in the amount of capital per worker is called

• A)capital deepening
• B)marginal capital
• C)per-worker production function
• D)human capital
• E)diminishing marginal returns from capital

Recognize the differences between small and large stock dividends and their respective accounting treatments.

Analyze the impacts of stock dividends on the marketability and market price of the corporation's stock.

Understand the role and effect of retained earnings, including restrictions and adjustments, in dividend distributions.

Identify and calculate the effects of stock splits on a company's financial statements.

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Definitions:

Long-Term Asset

A long-term asset is an asset that is not expected to be converted into cash within a year and is used over a long period, such as property, plant, and equipment.

Intangible Asset

An asset that lacks physical substance and usually is very hard to evaluate, such as patents, trademarks, and copyrights.

Lease Term

The period for which a lease agreement is effective, specifying the duration for which the lessee has the right to use the property.