Which of the following show the proper effect of a stock split and a stock dividend?Stock DividendItemTotal paid-in capitalItemPar value per shareItemTotal retained earningsItemTotal par value (common)Stock SplitIncreaseStock SplitDecreaseStock SplitDecreaseStock SplitDecreaseIncreaseStock DividendNo changeStock DividendDecreaseStock DividendIncrease

A stock dividend is a distribution of additional shares of a company's stock to existing…

Answered: Which of the following show the proper…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which statement is false? - stock dividend increases the amount of paid in capital -Stock splits cause no change in the amount of the stockholder's equity - stock splits increase the number of shares -stock dividend increases total stockholders equity
Differentiate between the stock dividend and stock split and their effects on the stock prices.
Write down the reasons for stock dividend.
Which of the following transactions will increase thereturn on equity?a. Declare and issue a stock dividend.b. Split the stock 2-for-1.c. Repurchase the company’s stock.d. None of the above.
What does a large stock dividend known as?
What is the impact of treasury stock on the presentation of stockholder’s equity? Treasury stock is added to paid-in capital, subtracted from common stock, and added to retained earnings. Treasury stock is subtracted from paid-in capital, common stock, and retained earnings thereby reducing stockholder’s equity. Treasury stock is subtracted from paid-in capital, added to common stock, and retained earnings. Treasury stock is added to paid-in capital, common stock, and retained earnings thereby increasing stockholder’s equity. Stockholders’ equity can increase due to: Inventory is increased. Retained Earnings decrease. Dividends are distributed. Stock is issued and common stock is increased. The Cash Dividends Payable account incurs a liability when: On the record date. On the last day of the period. On the payment date. On the declaration date. provide the correc answer and explain what ciorrect choices
Flexsteel is giving out a large stock dividend. This would: A. Results in a transfer of retained earnings to the common stock account B. Reduces the par value per share by the percentage of the additional shares issued. C. Is accounted for in exactly the same manner as a stock split D. Results in a transfer of retained earnings to common stock and additional paid in capital

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