A Share Dividend Will Cause Changes in the Dollar Value

question 39

Multiple Choice

A share dividend will cause changes in the dollar value of which of the below capital accounts?

• A)Ordinary shares
• B)Additional paid-in capital
• C)Retained earnings
• D)All of the above

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Definitions:

Financial Statements

A set of formal records that outline the financial activities and position of a business, individual, or other entity, typically comprising the balance sheet, income statement, and cash flow statement.

Statement Of Cash Flows

A financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.

Gain

An increase in wealth, assets, or profits, often realized from investments or other financial transactions.

Fixed Assets

Long-term tangible assets, such as buildings, machinery, and equipment, that are used in the operations of a business and are not expected to be consumed or converted into cash within a year.