When a Corporation Issues a Stock Dividend, Which of the Following

question 83

Multiple Choice

When a corporation issues a stock dividend, which of the following is true?

• A)Cash decreases.
• B)Total stockholders' equity remains the same.
• C)Total stockholders' equity decreases.
• D)Retained earnings is increased.

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Definitions:

Marginal Rate

The rate at which a certain quantity changes with respect to a change in another quantity, often used in the context of tax or interest.

Transformation

The process of changing or converting from one form, state, or system to another, applicable in various contexts such as business, technology, and personal development.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources), assuming all are used efficiently.

Production Possibility Frontier

illustrates the maximum feasible quantity of one good that can be produced for every possible quantity of another good given available resources and technology.