If a Subsidiary Issues a Stock Dividend,which of the Following

question 52

Multiple Choice

If a subsidiary issues a stock dividend,which of the following statements is true?

• A)Investment in subsidiary on the parent's books will increase
• B)Investment in subsidiary on the parent's books will decrease.
• C)Additional paid-in capital on the parent's books will increase
• D)Additional paid-in capital on the parent's books will increase.
• E)No adjustment is necessary.

Apply the concept of depreciation and its impact on financial statements.

Recognize the importance of supplies and inventory adjustments and their effect on financial reporting.

Explain the consequences of errors in adjusting entries on the balance sheet and income statement.

Perform vertical analysis on financial statements to identify trends and indicate financial health.

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Definitions:

Whooping Cough

A highly contagious respiratory tract infection characterized by severe coughing fits and a distinctive "whooping" sound when inhaling.

Pertussis

A highly contagious respiratory disease also known as whooping cough, caused by the bacterium Bordetella pertussis.

Sensitivity

Abnormal susceptibility to a substance.

Abnormal Susceptibility

An increased likelihood of developing certain conditions or diseases compared to the general population.