In a Stock Dividend

question 21

Multiple Choice

In a stock dividend:

• A)there is no change in the retained earnings account.
• B)shareholder wealth is unchanged.
• C)the stock accounts decrease while retained earnings increases.
• D)par value is reduced.

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Definitions:

Purchased Goodwill

The amount paid in excess of the fair market value of net assets during the acquisition of a company.

Theoretical Characteristic

An abstract property or attribute foundational to theoretical models or concepts, often used in academic and scientific research.

Research and Development Costs

Expenses related to the investigation and creation of new knowledge, products, processes, or services.

Purchased Goodwill

The intangible asset recorded when a company acquires another business for more than the fair value of its net identifiable assets, representing non-physical assets like reputation and brand value.