Which of the Following Actions Will Increase the Common Stock

question 10

Multiple Choice

Which of the following actions will increase the Common Stock account?

• A) cash dividend
• B) stock split
• C) stock dividend declared and distributed
• D) purchase of treasury stock

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Definitions:

Maintenance Costs

Expenses incurred to keep property, equipment, or software operational and in good working condition.

Inflation

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Sum-Of-The-Years'-Digits Method

A depreciation method that accelerates the expense recognition, basing the depreciation for each year on a decreasing fraction of the depreciable amount.

Benefits Decline

A situation where the advantages or value derived from an asset or service decrease over time.