Which of the following statements about stock dividends is not true?Stock dividend is the only type of dividend that does not reduce stockholders’ equity.Stock dividend is the only type of dividend that does not reduce retained earnings.Stock dividend does not affect par value per share.Stock dividend may or may not affect paid-in capital in excess of par.

Stock dividend is the payment of dividends in form of shares instead of cash.

Answered: Which of the following statements about…

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 of the following statements about stock dividends is not true?

Stock dividend is the only type of dividend that does not reduce stockholders’ equity.
Stock dividend is the only type of dividend that does not reduce retained earnings.
Stock dividend does not affect par value per share.
Stock dividend may or may not affect paid-in capital in excess of par.

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