Declaring and Distributing Stock Dividends

question 6

Multiple Choice

Declaring and distributing stock dividends:

• A)is the distribution of cash to the stockholders.
• B)increases the total liabilities of the corporation and decreases the total stockholders' equity.
• C)reduces the total assets of the corporation.
• D)has no effect on total stockholders' equity.

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Definitions:

Sexual Drive

The biologically influenced motivation for sexual activity and expression.

Babies

Young infants or very young children, typically those under the age of one year.

Physical Pleasure

Physical pleasure is a sensation of bodily enjoyment, typically associated with activities that satisfy biological needs or stimulate the senses in a positive way.

Pleasure Principle

A concept in psychoanalytic theory referring to the drive toward immediate gratification of needs and desires.