A Small Stock Dividend

question 44

Multiple Choice

A small stock dividend:

• A)Results in a transfer of retained earnings to common stock and additional paid-in capital.
• B)Increases the number of shares outstanding and involves a pro rata reduction in the par value per share.
• C)Is accounted for in exactly the same manner as a stock split.
• D)Results in a transfer of retained earnings to additional paid-in capital and also increases the number of shares outstanding and involves a pro rata reduction in the par value per share.

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Definitions:

Federal Funding

Government funds provided to projects, programs, individuals, or entities typically through grants, loans, or direct payments.

Expenditure Limits

Financial restrictions imposed by governments on how much can be spent in a certain period or on a specific project to prevent overspending.

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An organization that raises and spends money to influence elections or legislation, particularly in the United States.

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Financial support from government revenue to projects or organizations that serve the public interest.