A Feature Common to Both Stock Splits and Stock Dividends

question 30

Multiple Choice

A feature common to both stock splits and stock dividends is

• A) That there is no effect on total stockholders' equity.
• B) A reduction in the contributed capital of a corporation.
• C) A transfer to earned capital of a corporation.
• D) An increase in total liabilities of a corporation.

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Definitions:

Front View

The principal view of an object in technical drawing, depicting the most characteristics of the design, typically facing the observer directly.

Purpose

The reason for which something is done or created or for which something exists.

Arrangement of Views

The organized layout of different perspectives of an object (top, front, side views) in technical drawing to provide comprehensive detail.