Stock Dividends

question 188

Multiple Choice

Stock dividends:

• A) decrease total shareholders' equity
• B) have no effect on total shareholders' equity
• C) reduce the total assets of the company
• D) increase total liabilities upon declaration

Determine the margin of safety in both dollar terms and as a percentage.

Analyze the effects of a change in sales mix on the break-even point and net operating income.

Understand the concept and computation of break-even points in both sales units and dollar sales.

Grasp the principle of the contribution margin ratio and its impact on profitability.

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Definitions:

Job Specialization

The process of focusing one's occupational capacity on a specific area of expertise, leading to increased efficiency and skill in that area.

Hygiene Factor

Elements of the work environment that, according to Herzberg's two-factor theory, prevent job dissatisfaction but do not necessarily enhance job satisfaction, such as salary and working conditions.

Job Security

The chance or likelihood of a person maintaining their employment without facing the possibility of losing their job.

Autonomy

The degree of independence and self-direction that an individual or entity possesses.