You Owned 200 Shares Last Year and Received a Stock

question 54

Multiple Choice

You owned 200 shares last year and received a stock dividend of 5% at the end of last year. The number of shares you now have is _____ and your wealth has increased by ______%.

• A) 10; 5
• B) 210; 5
• C) 210; 0
• D) 50,000; 5
• E) 50,000; 0

---

Definitions:

Other Comprehensive Income

Income that includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Equity Method

A financial recording method where investments are logged if the investor has a considerable impact on the investee, though not complete control.

Cumulative Losses

Total losses accumulated over a period, often reflecting a company's financial difficulties or losses in investment value.

Fair-Value Method

An accounting strategy used to measure and report the value of certain assets and liabilities on the basis of their actual or estimated fair market prices.