Paying a Stock Dividend ________

question 49

Multiple Choice

Paying a stock dividend ________.

• A) decreases the retained earnings account
• B) has no effect on the retained earnings account
• C) increases the retained earnings account
• D) reorganizes the income

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Definitions:

Cognitive Consistency

The psychological concept that suggests that individuals prefer their beliefs, attitudes, and perceptions to be harmonious and consistent with each other.

Self-Perception

An individual's understanding and evaluation of their own personality, characteristics, and behaviors.

Positive Attitude

A mental disposition that reflects expectations of favorable outcomes or highlights positive aspects of a situation.

Level of Commitment

the extent to which an individual is dedicated to a course of action or organization.