Assuming the Issuing Company Has Only One Class of Stock

question 21

Multiple Choice

Assuming the issuing company has only one class of stock, a transfer from retained earnings to capital stock equal to the market value of the shares issued is ordinarily a characteristic of

• A) Either a stock dividend or a stock split
• B) Neither a stock dividend nor a stock split
• C) A stock split but not a stock dividend
• D) A stock dividend but not a stock split

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Definitions:

Specified Amount

A particular or set quantity determined or designated in a given context.

Medicare-approved Amount

The maximum amount that Medicare will pay for a covered service or item, which providers agree to accept as full payment.

Workers' Compensation Board

A government agency responsible for processing claims and providing benefits to workers injured on the job.

Industrial Injury

Physical harm or sickness resulting from an accident or exposure in the workplace.