Which of the Following Is True with Regard to a Stock

question 120

Multiple Choice

Which of the following is true with regard to a stock dividend?

• A)It results in a transfer of retained earnings to contributed capital.
• B)It increases the number of shares outstanding and involves a pro rata reduction in the par value per share.
• C)It is accounted for in exactly the same manner as a stock split.
• D)It does not require a journal entry.

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