What Is the Effect of a Stock Dividend on the Balance

question 75

Multiple Choice

What is the effect of a stock dividend on the balance sheet?

• A)Decrease total assets and decrease total stockholders' equity
• B)Decrease total assets and increase total stockholders' equity
• C)Increase total liabilities and decrease total stockholders' equity
• D)No effect on total assets,total liabilities,or total stockholders' equity

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Definitions:

Top Management

The highest ranking executives in an organization, responsible for strategic decision-making and setting company direction.

Ethical Self-Governance

The personal commitment to behave according to one's own moral principles, often reflecting broader social or professional norms.

Socially Responsible Manner

Acting in ways that are not only profitable but also ethical, taking into account the effects on people, the community, and the environment.

Corporate Governance

The framework consisting of policies, practices, and procedures used to guide and manage a company, aiming to balance the needs of all its stakeholders.