A Company Issues a Stock Dividend of 1,000 Shares

question 24

Multiple Choice

A company issues a stock dividend of 1,000 shares. Par value is $10 per share and market value is $30 per share. Choose the correct account effect:

• A) Retained Earnings will increase by $10,000.
• B) Capital Contributed in Excess of Par will increase by $30,000.
• C) Cash will decrease by $30,000.
• D) Common Stock will increase by $10,000.

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Definitions:

Inducers

Substances that initiate or enhance the expression of specific genes, often by deactivating a repressor protein.

Embryonic Tissue

Specialized tissues that form during the early stages of embryonic development, leading to the formation of various organs and structures.

Induction

Ability of a chemical or a tissue to influence the development of another tissue.

Membrane Depolarizes

The process by which a cell membrane's voltage becomes less negative, leading to the possible firing of an action potential in neurons.