Declaration and Distribution of a Stock Dividend Cause Each of the Following

question 26

Multiple Choice

Declaration and distribution of a stock dividend cause each of the following effects except:

• A)An increase in the number of shares of stock outstanding.
• B)A decrease in retained earnings.
• C)A decrease in total assets of the issuing corporation.
• D)An increase in legal capital of the issuing corporation.

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Definitions:

Stromatolites

Layered structures formed by the growth of microbial mats, often found in fossil form and considered some of the oldest evidence of life on Earth.

Microscopic Creatures

Tiny organisms that can only be seen with the aid of a microscope, including bacteria, protozoa, and some fungi and algae.

Correlate

The process of establishing a relationship or connection between two or more variables, often used in scientific research to determine causal links or patterns.

Distinctive Rock

A type of rock that possesses unique features or characteristics, making it easily distinguishable from other rocks.