When a Company Issues a Stock Dividend Which of the Following

question 85

Multiple Choice

When a company issues a stock dividend which of the following would be affected?

• A)Earnings per share.
• B)Total assets.
• C)Total liabilities.
• D)Total stockholder's equity.When a company issues a stock dividend, earnings per share decreases as the number of shares outstanding increases.There is no effect on total assets, total liabilities or total stockholders' equity.

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Definitions:

Different Alleles

Variations or alternative forms of a gene that can exist at a single locus (position) on a chromosome.

Dominant Allele

An allele that expresses its phenotypic effect even when heterozygous with a recessive allele; it masks the effect of a recessive allele.

Heterozygous Individuals

Individuals having two different alleles at a particular genetic locus, one inherited from each parent.

Phenotypic Expression

The observable physical and physiological traits of an organism, which result from the interaction between its genetic makeup and environmental influences.