What Effect Will the Declaration and Distribution of a Stock

question 41

Multiple Choice

What effect will the declaration and distribution of a stock dividend have on net income and cash flows?

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Notice of Assignment

A formal notification that a contract or property has been legally transferred from one party to another.

Statute of Frauds

A legal principle that requires certain types of contracts to be executed in writing and signed by the party to be charged.

Promissory Estoppel

The legal enforcement of an otherwise unenforceable contract due to a party’s detrimental reliance on the contract.

English Rule

A legal principle where the losing party in a lawsuit is required to pay the winning party's legal costs.