What Is the Effect of a Stock Dividend on the Balance

question 75

Multiple Choice

What is the effect of a stock dividend on the balance sheet?

• A)Decrease total assets and decrease total stockholders' equity
• B)Decrease total assets and increase total stockholders' equity
• C)Increase total liabilities and decrease total stockholders' equity
• D)No effect on total assets,total liabilities,or total stockholders' equity

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Definitions:

Laundry Detergent

A type of cleaning agent that is used for washing clothes.

For-Profit Business

A type of enterprise that aims to earn profit for its owners through its operations and services.

Not-for-Profit Organization

An entity that operates for purposes other than generating profit, often focusing on social, educational, or charitable activities.

Private Property

The legal designation of the possession of property by non-governmental legal entities or individuals.