Wildcat, Inc

question 26

Multiple Choice

Wildcat, Inc. declared a 10% stock dividend when it had 150,000 shares of $1 par value common stock outstanding. The market price per share of common stock was $10 per share when the dividend was declared. The entry to record the stock dividend would include a credit to:

• A) Retained Earnings $150,000.
• B) Paid-in Capital in Excess of Par $135,000.
• C) Common Stock $150,000.
• D) Retained Earnings $15,000.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a product and the quantity of the product that consumers are willing and able to purchase at that price.

Substitute Good

A product or service that a consumer can use in place of another to satisfy the same need or desire.

LRMC

Long-Run Marginal Cost, which refers to the change in total production costs that comes from producing one additional unit of a good or service when all inputs are variable.

SRMC

Short-Run Marginal Cost (SRMC) is the cost to produce one additional unit of output when some inputs are fixed.