What Is the Effect of a Stock Dividend on Stockholders

question 116

Multiple Choice

What is the effect of a stock dividend on stockholders' equity?

• A)Stockholders' equity is decreased.
• B)Retained earnings is increased.
• C)Additional paid-in capital is decreased.
• D)Total stockholders' equity stays the same.

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Definitions:

Final Grade

The comprehensive evaluation of a student's performance in a course, typically expressed as a letter grade or percentage.

Ordinal Variable

An ordinal variable is a type of categorical data with a set order or scale but without a precise distance between its categories.

Class Rank

A measure that indicates a student's academic performance relative to their peers, often used for college admissions or award determinations.

Frequency Distribution

An arrangement of data that shows how often each value in a dataset occurs.