The Receipt of a Stock Dividend

question 131

Multiple Choice

The receipt of a stock dividend:

• A)has no effect on assets or total equity.
• B)increases assets and increases paid-in-capital.
• C)increases assets and decreases stockholders' equity.
• D)increases assets and increases retained earnings.

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Definitions:

Unrealistically High

Pertains to expectations or goals that are set far beyond achievable standards, often leading to disappointment or failure.

Psychological Contract Breach

Occurs when an employee perceives that their employer has failed to fulfill one or more promises or agreements in their perceived psychological contract.

Reality Shock

The feeling of surprise and disorientation experienced when one's expectations clash with the actual reality.

Psychological Contract

An unwritten and implicit agreement between an employer and an employee that outlines mutual expectations, including job security, loyalty, and commitment.