Which of the Following Occurs When a Corporation Distributes a Stock

question 187

Multiple Choice

Which of the following occurs when a corporation distributes a stock dividend?

• A) Total liabilities would increase.
• B) Total stockholders' equity would increase.
• C) Total assets would decrease.
• D) Total stockholders' equity would be unchanged.

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Definitions:

Somatoform

Disorders characterized by physical symptoms that suggest a medical condition, but are not fully explained by a medical condition, substance use, or another mental disorder.

Psychosis

A mental disorder characterized by a disconnection from reality, which might include hallucinations, delusions, and impaired thought processes.

Ego

A component of Sigmund Freud's psychoanalytic theory, representing the realistic part of the psyche that mediates between desires and moral constraints.

Self

Pertaining to the individual person, often in reference to one's own thoughts, feelings, or actions.