Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant. Stock Dividends: It refers to the payment of the dividend to its shareholders by the corporation in the form of shares rather than cash is referred as stock dividend. To indicate: The whether each of the events related to cash dividend and stock split would increase (+), decrease (–), or not affect (0) the total assets, liabilities, and stockholders’ equity of Incorporation I.

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Indicate whether the following actions would (+) increase, (–) decrease, or (0) not affect a company's total assets, liabilities, and stockholders' equity. Stockholders' Assets Liabilities Equity (a) Declaring a cash dividend _______ _______ _______ (b) Paying the cash dividend declared in (a) _______ _______ _______ (c) Declaring a stock dividend _______ _______ _______ (d) Issuing stock certificates for the stock dividend declared in (c) _______ _______ _______ Question 10 options:

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Chapter 13, Problem 13.21EX

To determine

Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant.

Stock Dividends: It refers to the payment of the dividend to its shareholders by the corporation in the form of shares rather than cash is referred as stock dividend.

To indicate: The whether each of the events related to cash dividend and stock split would increase (+), decrease (–), or not affect (0) the total assets, liabilities, and stockholders’ equity of Incorporation I.

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