With Respect to a Company Paying a Stock Dividend,which of the Following

question 2

Multiple Choice

With respect to a company paying a stock dividend,which of the following is false?

• A) The capital account remains unchanged.
• B) The overall value of the firm remains unchanged.
• C) The corporation distributes additional stock certificates.
• D) There is no proportionate change in ownership.

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Definitions:

Chart of Accounts

The chart of accounts is a systematic listing of all account titles and numbers used in a company's accounting system, facilitating organization and financial reporting.

Note Receivable

A financial asset representing a promise to pay a specific amount of money, plus interest if applicable, by a certain date or dates.

T-account

A T-account is a visual representation of a general ledger account that outlines a business's debits and credits.

Unearned Revenues

Income received by a company for goods or services that have yet to be delivered or performed.