How Will a Company's Total Current Liabilities and Total Stockholders

question 92

Multiple Choice

How will a company's total current liabilities and total stockholders' equity be affected by the declaration of a stock dividend? (Assume the stock dividend is distributed at a later date.)

• A) I
• B) II
• C) III
• D) IV

---

Definitions:

Operating Segments

Components of a business that engage in business activities from which it may earn revenues and incur expenses, often reported in financial statements for diversified companies.

LIFO Method

"Last In, First Out," an inventory valuation method where the most recently purchased items are the first to be sold, affecting the cost of goods sold and inventory valuation.

FIFO Method

"First In, First Out," an accounting method for valuing inventory, where the earliest items acquired are the first to be sold.

Inventory Valuation

The method used to assess the cost or market value of inventories held by a business for the purpose of financial reporting.