Declaring and Distributing Stock Dividends

question 6

Multiple Choice

Declaring and distributing stock dividends:

• A)is the distribution of cash to the stockholders.
• B)increases the total liabilities of the corporation and decreases the total stockholders' equity.
• C)reduces the total assets of the corporation.
• D)has no effect on total stockholders' equity.

Understand the relationship between the cost formula, budgeted activity, and actual activity.

Develop critical thinking skills in financial analysis and decision-making.

Understand the concept and application of flexible budgets in identifying variances.

Calculate spending variances for different categories of costs.