Which of the Following Occurs When a Corporation Distributes a Stock

question 146

Multiple Choice

Which of the following occurs when a corporation distributes a stock dividend?

• A)Total liabilities increase.
• B)Total stockholders' equity increases.
• C)Total assets decrease.
• D)Total stockholders' equity remains unchanged.

---

Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts.

Ledger Accounts

Individual records providing detailed information about all the transactions related to a specific account, kept in the ledger of a company.