A Stock Dividend Transfers

question 4

Multiple Choice

A stock dividend transfers:

• A)Contributed capital to retained earnings.
• B)Retained earnings to contributed capital.
• C)Retained earnings to assets.
• D)Contributed capital to assets.
• E)Assets to contributed capital.

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Definitions:

Sensitization

An increased reaction to a stimulus following repeated exposures to it.

Classical Conditioning

An educational method where a connection is made between a stimulus in the environment and one that occurs naturally, resulting in a conditioned response.

Stimuli

Physical or chemical changes in the external or internal environment that evoke a response from a living organism.

Acclimation

The process of an organism adjusting to change in its environment, allowing it to survive and reproduce.