If a Firm Has Retained Earnings of $20 Million, a Common

question 66

Multiple Choice

If a firm has retained earnings of $20 million, a common shares account of $25 million, and additional paid-in-capital of $15 million, how much would be transferred in (or out) of these accounts in response to a 15 percent stock dividend, respectively?

• A) − 15 percent, 0 percent, + 15 percent
• B) − 15 percent, + 15 percent, 0 percent
• C) − 30 percent, + 15 percent, + 15 percent
• D) − 30 percent, + 30 percent, + 30 percent

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Definitions:

Jealousy

An emotion that arises from perceived threats to a relationship or social status, leading to feelings of insecurity or fear of loss.

Anal Stage

A phase in Freud's psychosexual development theory, occurring from ages 18 months to three years, when a child's focus is on controlling bladder and bowel movements.

Obstinate

Showing stubbornness and refusal to change one's opinion or chosen course of action, despite attempts to persuade one to do so.

Stingy

Describing a person or behavior characterized by an unwillingness to spend money or use resources; being miserly or parsimonious.