Both Cash Dividends and Stock Dividends

question 81

Multiple Choice

Both cash dividends and stock dividends:

• A)reduce total assets.
• B)reduce total liabilities.
• C)reduce total stockholders' equity.
• D)reduce retained earnings.

---

Definitions:

Profitability Computed

Refers to the calculation of a company's earnings versus its expenses to determine financial performance.

Average Annual

Average annual typically refers to the mean amount or figure calculated over a year's period, often used in financial, operational, or performance metrics.

Average Amount

The average amount refers to the arithmetic mean of a set of numbers or quantities, obtained by summing them together and then dividing by the count of these numbers.

Amortization Period

The duration of time over which the cost of an intangible asset is incrementally expensed or amortized to a company's financial statements.