Which of the Following Occurs When a Corporation's Board of Directors

question 96

Multiple Choice

Which of the following occurs when a corporation's board of directors distributes a 10% stock dividend?

• A) Retained earnings will be credited for the new shares times the current market value of the stock.
• B) Retained earnings will be debited for the new shares times the current market value of the stock.
• C) Retained earnings will be debited for the new shares times the par value of the stock.
• D) Retained earnings will be credited for the new shares times the par value of the stock.

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Definitions:

Column Heading

The title or label at the top of a column in a table or spreadsheet, indicating the type of data or information contained within the column.

Portrait Orientation

The vertical alignment of a document or image, where the height is greater than the width.

Database Table

A structured arrangement of data in rows and columns in a database, where each row typically represents a record and columns represent attributes of the record.

Redundancy

The inclusion of extra components that are not necessarily needed, often used in systems to increase reliability.