Receiving a Stock Dividend Affects What Part of the Balance

question 145

Multiple Choice

Receiving a stock dividend affects what part of the balance sheet?

• A) Increases assets and increases paid-in-capital
• B) Increases assets and decreases stockholders' equity
• C) Increases assets and increases retained earnings
• D) Has no effect on assets or total equity

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Definitions:

Budgeted Cost Systems

Accounting methods that use budgets to project costs and revenues, helping companies plan for future operations and financial performance.

Product Costs

The three components of manufacturing cost: direct materials, direct labor, and factory overhead costs.

Standard Cost

A detailed estimate of what a product should cost.

Past Cost Data

Historical financial information regarding the costs incurred by a business.