Which of the Following Is Not a Direct Result of a Stock

question 142

Multiple Choice

Which of the following is not a direct result of a stock dividend?

• A)the number of shares outstanding is increased
• B)the market price of each outstanding share is increased
• C)the amounts shown in the firm's capital accounts are redistributed
• D)a and b

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Definitions:

Depreciation

The method of distributing the expense of a physical asset through its lifespan, accounting for depreciation, outdatedness, or aging.

Allocation Process

The method of distributing costs among different departments, products, or services for accounting purposes.

Expense Recognition Principle

An accounting principle that expenses are recognized and recorded when they are incurred, regardless of when cash payments are made.

Expenses

Costs incurred in the operation of a business to earn revenue, including operating and non-operating expenses.