Which of the Following Balance Sheet Accounts Are Affected by a Small

question 17

Multiple Choice

Which of the following balance sheet accounts are affected by a small stock dividend?
I.cash
II.common stock
III.retained earnings
IV.capital in excess of par value

• A)I and III only
• B)II and III only
• C)II and IV only
• D)II, III, and IV only
• E)I, II, III, and IV

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Definitions:

Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and products that are similar but differentiated.

Maximize Profit

The goal of adjusting production or service levels to achieve the highest possible returns.

Equilibrium Quantity

The quantity of goods or services supplied that is equal to the quantity demanded at the market equilibrium price.

Subsidies

Financial support extended by the government to stimulate an industry or reduce the prices of goods and services for consumers.