Which of the Following Is (Are) Not True About a Stock

question 42

Multiple Choice

Which of the following is (are) not true about a stock dividend?

• A) Total stockholders' equity does not change when a stock dividend is declared or when it is distributed.
• B) Between the time a stock dividend is declared and when it is distributed, the company's commitment is presented in the balance sheet as a current liability.
• C) Stock dividends do not change the relative portion of the company owned by individual stockholders.
• D) Stock dividends have no impact on the amount of the company's assets.

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Definitions:

Electricity

A form of energy resulting from the existence of charged particles, used as a power source.

Assembly Worker

An individual employed in the manufacturing sector whose primary role involves assembling components or products.

Mixed Costs

Expenses that have both a fixed and a variable component, changing with the level of production or sales activity but also including a constant element.

Period Costs

Selling and administrative expenses incurred in marketing the product, delivering the product, or managing the company and not directly related to manufacturing the product.