How Does the Declaration and Distribution of a 10% Stock

question 137

Multiple Choice

How does the declaration and distribution of a 10% stock dividend affect stockholders' equity?

• A)The total amount of stockholders' equity will increase.
• B)The total amount of stockholders' equity will decrease.
• C)The balances of different accounts in stockholders' equity will change,but total stockholders' equity is unchanged.
• D)There is no change.

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Definitions:

Fearful

Feeling afraid or anxious; the emotional response to perceived threats or danger.

Agitated

A state of nervousness or unrest, often characterized by rapid movement or speaking.

Nonreactive

Describes a substance or individual that does not respond or change when exposed to another substance or a particular stimulus.

Extroverted

Characterized by an outgoing, socially confident personality, often seeking stimulation and enjoying the company of others.