Which of the Following Is a TRUE Statement

question 132

Multiple Choice

Which of the following is a TRUE statement?

• A) Both a stock split and a stock dividend will decrease total assets.
• B) Both a stock split and a stock dividend will increase total liabilities.
• C) A stock split will increase total assets, but a stock dividend will not.
• D) Neither a stock split nor a stock dividend will affect total assets or total liabilities.

---

Definitions:

Manufacturing Overhead Budget

A financial plan that estimates the indirect costs associated with manufacturing, including utilities, salaries, and maintenance.

Direct Labor-Hour

A measure of the labor directly involved in manufacturing or service provision, calculated in hours.

Variable Overhead Rate

A rate that fluctuates with changes in production levels or business activity, applied to allocate variable overhead costs to products or services.

Cash Disbursements

The outflow of cash for expenses, investment purchases and other payments.