Compare and contrast the accounting for cash dividends and stock
Compare and contrast the accounting for cash dividends and stock dividends. In the space provided, insert either “Cash dividends,” “Stock dividends,” or “Both” to complete each of the following statements:
1. ________ increase share capital by the same amount that they decrease retained earnings.
2. ________ decrease both total assets and total shareholders’ equity.
3. ________ decrease retained earnings.
4. ________ have no effect on a liability.
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