?With regard to stock dividend, which of the following is true.Reduces a corporation's assets and stockholders' equity A.Does not affect total equity, but transfer amounts between the components of equity.B„The decision to declare a stock dividend resides with the shareholders .CTransfers a portion of equity from retained earnings to a cash reserve account.D

The portion of profit paid to the shareholders on timely basis in form of the return over the…

Answered: ?With regard to stock dividend, which…

Business

Accounting

?With regard to stock dividend, which of the following is true

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 14MC: Which of the following is true of a stock dividend? A. It is a liability. B. The decision to issue a...

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

?With regard to stock dividend, which of the following is true
.Reduces a corporation's assets and stockholders' equity A
.Does not affect total equity, but transfer amounts between the components of equity.B
„The decision to declare a stock dividend resides with the shareholders .C
Transfers a portion of equity from retained earnings to a cash reserve account.D

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