A Stock Dividend Will

question 32

Multiple Choice

A stock dividend will:

• A) reduce total assets
• B) have no effect on total assets
• C) have no effect on total assets or total owners' equity
• D) increase total owners' equity

---

Definitions:

Inventory Value

The total cost or market value of all the goods and products held by a company intended for sale in the ordinary course of business.

Rising Prices

Refers to an economic condition where the general level of prices for goods and services increases over a period of time.

LIFO Liquidation

A reduction in inventory that results when the number of units sold exceeds the number of units purchased, often resulting in lower costs and higher profits under Last-In, First-Out accounting.

Interim Reporting

The financial statements issued by a company for a period less than its full fiscal year, often quarterly, to provide timely information to investors.