A Large Stock Dividend

question 55

Multiple Choice

A large stock dividend:

• A)Results in a transfer of retained earnings to common stock and additional paid-in capital.
• B)Reduces the par value per share by the percentage of the additional shares issued.
• C)Is accounted for in exactly the same manner as a stock split.
• D)Results in a transfer of retained earnings to the common stock account.

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Definitions:

Hair Follicle

A skin organ that produces hair, consisting of cells that together form the structure hosting each hair strand.

Hair Shaft

The part of the hair that is above the skin surface, consisting of dead, keratinized cells.

Hair Bulb

The rounded, living part of hair located at the base of the hair follicle, where hair growth begins.

Hair Root

The part of the hair located below the surface of the skin, anchoring the hair into the scalp or skin.