The Declaration and Issuance of a Stock Dividend on Shares

question 95

Multiple Choice

The declaration and issuance of a stock dividend on shares of common stock:

• A) Has no effect on assets, liabilities, or total shareholders' equity.
• B) Decreases total shareholders' equity and increases common stock.
• C) Decreases assets and decreases total shareholders' equity.
• D) Does not change retained earnings or paid-in capital.

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Definitions:

A-not-B Error

A cognitive error observed in young children, where they wrongly assume that an object at a hidden location remains there even after seeing it being moved to a new location.

Habituation

A psychological learning process wherein there is a decrease in response to a stimulus after being repeatedly exposed to it.

Sensorimotor Stage

The first of Jean Piaget's stages of cognitive development, where infants from birth to about 2 years old learn through interacting with their environment using their senses and motor actions.

Active Experimentation

A learning approach where individuals learn by doing, engaging in activities to test hypotheses and reflect on outcomes to gain new knowledge.