Which of the Following Is a True About the Effect

question 69

Multiple Choice

Which of the following is a true about the effect of a stock split and stock dividend on total assets or liabilities?

• A)Both a stock split and a stock dividend will decrease total assets.
• B)Both a stock split and a stock dividend will increase total liabilities.
• C)A stock split will increase total assets,but a stock dividend will not.
• D)Neither a stock split nor a stock dividend will affect total assets or total liabilities.

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Definitions:

Pure Monopsonist

A market condition where there is only one buyer for a product or service.

Marginal Revenue Product

The additional revenue generated from using one more unit of a factor of production.

Marginal Expenditure

The supplementary cost resulting from acquiring an extra unit of a good or service.

Economic Rent

Economic rent is the excess payment made to or received by a factor of production over and above what would have been needed to bring that factor into production.