ll of the following statements regarding stock dividends are true except: Top of Form Multiple Choice Stock dividends transfer a portion of equity from retained earnings to contributed capital. Stock dividends provide evidence of management's confidence that the company is doing well. Stock dividends decrease the number of shares outstanding. Directors can use stock dividends to keep the market price of the stock affordable. Stock dividends do not reduce assets or equity. Bottom of Form

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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22-All of the following statements regarding stock dividends are true except:

Top of Form

Multiple Choice

Stock dividends transfer a portion of equity from retained earnings to contributed capital.

Stock dividends provide evidence of management's confidence that the company is doing well.

Stock dividends decrease the number of shares outstanding.

Directors can use stock dividends to keep the market price of the stock affordable.

Stock dividends do not reduce assets or equity.

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