Stock Dividends Require an Adjustment to the Beginning of Year

question 106

True/False

Stock dividends require an adjustment to the beginning of year balance in the number of common shares outstanding when calculating the weighted average number of shares outstanding for EPS.

---

Definitions:

Undivided Interests

A share in a property owned by two or more parties where each has an equal right to the entire property rather than a specific portion of it.

Easement

A legal right to use another's land for a specific limited purpose without owning it.

Orally

Expressed in spoken rather than written words; pertaining to verbal communication.

Access

The ability or right to enter, approach, or use something, such as a building, information, or a service.