Which of the Following Is Not a Side Effect of a Stock

question 25

Multiple Choice

Which of the following is not a side effect of a stock dividend?

• A) In terms of accounting, it is treated like a regular cash dividend.
• B) Investors may ascribe an informational content to a stock dividend.
• C) Investors pay the same amount of tax on stock dividends.
• D) The stock price will increase.

---

Definitions:

Cost Object

Any item for which a separate measurement of costs is desired, such as products, services, projects, customers, or activities.

Motor Vehicles

Wheeled transportation vehicles powered by an internal combustion engine or electric motors, used for the conveyance of people or goods.

Finished Goods Inventory

The stock of completed products that are ready to be sold but have not yet been purchased by consumers or clients.

Cost Of Goods Sold

The immediate expenses directly related to the manufacture of products a company sells, such as raw materials and workforce costs.