Sunday, November 10, 2019

Which of the following account balance changes occur as a result of a large stock dividend?

Which of the following balance sheet accounts are affected by a small stock dividend?

I. cash
II. common stock
III. retained earnings
IV. capital in excess of par value 
 
A. 
I and III only

B. 
II and III only

C. 
II and IV only

D. 
II, III, and IV only

E. 
I, II, III, and IV
Refer to section 17.8


43.
A small stock dividend is defined as a stock dividend of less than _____ percent. 
 
A. 
10 to 15

B. 
15 to 20

C. 
20 to 25

D. 
25 to 30

E. 
30 to 35
Refer to section 17.8


44.
Which one of the following is a result of a small stock dividend? 
 
A. 
increase in retained earnings

B. 
decrease in total owner's equity

C. 
decrease in cash

D. 
decrease in capital in excess of par value

E. 
increase in common stock
Refer to section 17.8

45.
Which of the following account balance changes occur as a result of a large stock dividend?

I. increase in common stock
II. decrease in capital in excess of par
III. increase in capital in excess of par
IV. decrease in retained earnings 
 
A. 
I and III only

B. 
II and IV only

C. 
I and IV only

D. 
II and III only

E. 
I, III, and IV only
Refer to section 17.8

AACSB: Analytic
Blooms: Understand

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