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:

Continuous Innovations

Ongoing, incremental improvements and updates to products or services, intended to maintain competitiveness and address evolving customer needs.

Test Market

A geographic region or demographic group used to gauge the viability of a product or service in a larger market by analyzing consumer response before a full-scale launch.

New-Product Development Process

The seven stages an organization goes through to identify opportunities and convert them into salable products or services.

New-Product Development Process

The sequence of steps involved in bringing a new product from concept to market, including research, design, and testing.