Which of the Following Occurs When a Corporation Distributes a Stock

question 87

Multiple Choice

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

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

---

Definitions:

Natural Science

The branch of science concerned with the description, prediction, and understanding of natural phenomena, based on empirical evidence from observation and experimentation.

Human Society

A structured community of people bound together by cultural similarities, social relations, or other shared attributes.

Scientific Thinking

A cognitive approach that employs skepticism, objectivity, and evidence-based analysis in understanding natural phenomena.

Empirical Demonstration

The use of observed or measured data to provide evidence for a theory or hypothesis.