Which of the Following Would Have No Effect on Retained

question 94

Multiple Choice

Which of the following would have no effect on Retained Earnings?

• A)Declaration of a cash dividend
• B)Declaration of a stock dividend
• C)Declaration of a stock split
• D)A prior period adjustment

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Definitions:

Direct Material B

A specific category of raw material that can be directly attributable to the manufacture of a product, distinct from other materials used.

Raw Materials Inventory

Items stored for use in the production process that have not yet been converted into finished goods.

Finished Goods Inventory

The total value of all completed products that are ready for sale but have not yet been sold.

Direct Materials Budget

An estimation of the raw materials required for production and their anticipated costs, aiding in financial planning and control.