Which of the Following Statements Concerning Stock Dividends Is Correct

question 95

Multiple Choice

Which of the following statements concerning stock dividends is correct?

• A) The declaration of a stock dividend should not be recorded as a liability even though it has not yet been issued.
• B) The issuance of a stock dividend increases total stockholders' equity.
• C) Courts generally have held that stock dividends, once declared, are irrevocable by the board of directors; therefore, a stock dividend declared, but not yet issued is a liability.
• D) A stock dividend cannot use treasury stock.

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Definitions:

Collective Agreement

A written contract negotiated between an employer and a union representing employees, outlining terms of employment, salaries, and work conditions.

Arbitration Criteria

The standards or guidelines used by an arbitrator to make a decision in a dispute resolution process.

Labour Agreement

A contract between employers and employees (or their representatives) that outlines terms of employment, wages, and working conditions.

Testimony

A formal statement or declaration given by a witness or expert, typically under oath in a legal context, or as part of data collection in research.