Which of these statements about stock dividends is true? a. Stock dividends reduce a company's cash balance.

Question:

Which of these statements about stock dividends is true?

a. Stock dividends reduce a company's cash balance.

b. A stock dividend has no effect on total stockholders' equity.

c. A stock dividend decreases total stockholders' equity.

d. A stock dividend ordinarily will increase total stockholders' equity.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting Tools For Business Decision Making

ISBN: 9781119791089

10th Edition

Authors: Paul D. Kimmel,  Jerry J. Weygandt,  Jill E. Mitchell

Question Posted: