Which of the Following Account Balance Changes Occur as a Result

question 13

Multiple Choice

Which of the following account balance changes occur as a result of a large stock dividend?
I.increase in common stock
II.decrease in capital in excess of par
III.increase in capital in excess of par
IV.decrease in retained earnings

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

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Definitions:

Diseconomies of Scale

The phenomenon where an increase in production leads to higher average costs per unit, often due to inefficiencies associated with scale of operation.

Output Rate

The output rate is the speed at which goods or services are produced over a specific period of time, often measured to evaluate productivity.

Fifth Worker

Refers to an addition to a workforce that exemplifies the impact or utility of hiring an additional employee in a given scenario.

Marginal Cost Curve

A graphical representation showing the change in total cost produced by making one additional unit of a good or service.