The effect of a stock dividend is to change the composition of stockholders' equity. decrease total assets and stockholders' equity. O increase the book value per share of common stock. O decrease total assets and total liabilities.

The effect of a stock dividend is to change the composition of stockholders' equity. decrease total assets and stockholders' equity. O increase the book value per share of common stock. O decrease total assets and total liabilities.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter13: Corporations: Organization, Stock Transactions, And Dividends

Section: Chapter Questions

Problem 12E

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Question

X Your answer is incorrect.
The effect of a stock dividend is to
O change the composition of stockholders' equity.
O decrease total assets and stockholders' equity.
O increase the book value per share of common stock.
O decrease total assets and total liabilities.
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