A Stock Dividend Will

question 10

Multiple Choice

A stock dividend will

• A)increase the value of a share of stock.
• B)decrease the "capital in excess of par" account.
• C)decrease the retained earnings account.
• D)None of these options

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Definitions:

Variable Cost

Costs that change in proportion to the level of activity or volume of goods produced.

Fixed Costs

Costs that do not change with the volume of production, such as rent, salaries, or insurance.

Contribution Margin

The difference between sales revenue and variable costs of a product or service, used to cover fixed costs and to generate profit.

Fixed Costs

Costs that do not change with the level of production or business activity, such as rent, salaries, and insurance premiums.