How Does the Receipt of a Stock Dividend on Long-Term

question 18

Multiple Choice

How does the receipt of a stock dividend on long-term Investment in Available-for-Sale Securities affect the balance sheet?

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

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