How Does the Declaration and Distribution of a 15% Stock

question 135

Multiple Choice

How does the declaration and distribution of a 15% stock dividend affect stockholders' equity?

• A)The total amount of stockholders' equity will increase.
• B)The total amount of stockholders' equity will decrease.
• C)The balances of different accounts in stockholders' equity will change,but total stockholders' equity is unchanged.
• D)There is no change.

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Definitions:

Functional

Designed to be practical and useful, rather than solely attractive, particularly in reference to objects or systems.

Usefulness

The degree to which a product, service, or information fulfills a need or purpose.

Fixed Asset

A fixed asset is a long-term tangible piece of property or equipment that a company owns and uses in its operations to generate income. Fixed assets are not expected to be converted into cash in the short term.

Physical

Pertaining to objects, materials, or substances that occupy space and have measurable properties, often contrasted with digital or virtual counterparts.