When a Corporation Declares a Stock Dividend

question 185

Multiple Choice

When a corporation declares a stock dividend:

• A) total liabilities decrease
• B) shareholders' equity decreases
• C) total assets decrease
• D) shareholders' equity remains unchanged

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Definitions:

Income Taxes

Taxes levied by the government on income generated by businesses and individuals within their jurisdiction.

Investing Activities Section

Part of a company's cash flow statement that shows the cash spent on and received from investment activities, including purchases and sales of securities.

Book Value

The net value of an asset according to its balance sheet account balance, taking into account depreciation, amortization, or impairment costs.

Loss

A financial term referring to when expenses exceed revenues in a specific period, indicating a negative profitability.