A Stock Dividend

question 79

Multiple Choice

A stock dividend

• A)results in a transfer of retained earnings to contributed capital.
• B)increases the number of shares outstanding and involves a pro rata reduction in the par value per share.
• C)is accounted for in exactly the same manner as a stock split.
• D)results in a transfer of retained earnings to contributed capital and also increases the number of shares outstanding and involves a pro rata reduction in the par value per share.

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Definitions:

Behaviors

The actions or reactions of an individual or a group in response to external or internal stimuli.

Group Leader

An individual who takes on the responsibility of guiding, directing, or influencing the members of a group towards achieving its objectives.

Group Members

are individuals who form part of a team or group working together towards a common goal or purpose.

Subgroups

Smaller distinct groups formed within a larger group, possibly based on shared interests or characteristics.