Shetland Ltd Declares and Pays a Share Dividend of 8

question 41

Multiple Choice

Shetland Ltd declares and pays a share dividend of 8 000 $2 shares. What is the effect on total equity in the company balance sheet?

• A) Total Equity increases by $16 000.
• B) Total Equity decreases by $16 000.
• C) The number of issued shares increases and the book value of each share decreases.
• D) Share Capital increases by $16 000 and Reserves decrease by $16 000, i.e. no change in total equity.

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Definitions:

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A developmental process by which infants learn to reproduce desired occurrences originally discovered by chance.

Phonemes

The least sound component in a language capable of distinguishing one word from another.

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