If a Firm Has Retained Earnings of $10 Million, a Common

question 21

Multiple Choice

If a firm has retained earnings of $10 million, a common shares account of $15 million, and additional paid-in-capital of $5 million, how much would be transferred in (or out) of these accounts in response to a 50 percent stock dividend, respectively?

• A) − 100 percent, 0 percent, + 100 percent
• B) − 100 percent, + 100 percent, 0 percent
• C) − 100 percent, + 50 percent, + 50 percent
• D) − 50 percent, + 50 percent, + 50 percent

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Definitions:

Delivered

In this context, it likely refers to the successful completion and provision of a healthcare service, product, or result.

Epididymis

A convoluted tube resting on the surface of the testicle that carries sperm from the testicle to the vas deferens.

Abdomen

The part of the body between the chest and pelvis, containing most of the digestive system organs along with the liver and kidneys.

Half-moon

A crescent-shaped figure, often used to describe the visible white shape at the base of a human fingernail.