If a Subsidiary Issues a Stock Dividend, Which of the Following

question 38

Multiple Choice

If a subsidiary issues a stock dividend, which of the following statements is true?

• A) Investment in subsidiary on the parent's books will increase.
• B) Investment in subsidiary on the parent's books will decrease.
• C) Additional paid-in capital on the parent's books will increase.
• D) Additional paid-in capital on the parent's books will decrease.
• E) No adjustment is necessary.

---

Definitions:

Taking Responsibility

The act of acknowledging one's role in a situation and accepting the consequences of one's actions, decisions, or mistakes.

Perpetuate

To cause something to continue indefinitely or for a prolonged period, often in a way that is considered undesirable.

Social Planning

The process of designing and implementing societal interventions, programs, and policies aimed at addressing social needs, improving community welfare, and fostering societal development.

Locality Development

Locality development emphasizes the involvement and empowerment of community members in the process of identifying and addressing their own needs to improve their local area.