When a Small (Under 10%) Stock Dividend Is Declared the Market

question 87

True/False

When a small (under 10%) stock dividend is declared the market value of the share is transferred from Retained Earnings into other shareholder equity accounts.

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Definitions:

Supply Curve

A graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period.

Substitute Choices

Options available that can replace or serve as alternatives to others, usually in the context of consumer goods or services.

Small Business Owner

An individual who owns and operates a business that is smaller in scale in terms of revenues, employees, and operations.

Economy Of Scale

The cost advantage achieved by companies when production becomes efficient, as fixed costs are spread out over more units of output.