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Lera25 [3.4K]
3 years ago
5

The declaration and issuance of a stock dividend larger than 25% of the shares previously outstanding

Business
1 answer:
lord [1]3 years ago
4 0

Answer:

b. decreases retained earnings but does not change total stockholders' equity.

Explanation:

<u>a. </u>increases common stock outstanding and increases total stockholders' equity.

<u>FALSE: </u>The Equity does not change as the Retained Earnings are used to issue the Shares, so no change in the total Stockholders Equity

<u>d. </u>increases retained earnings and increase total stockholders' equity.

<u>FALSE: </u>The retained earnings are debited thus, decrease when declaring dividends

<u>c.</u> may increase or decrease paid-in capital above par but do not change total

stockholders' equity.

<u>FALSE: </u>paid in will increase or not be used, as the shares will have a minimum value for the company of his face value.

<u>b. TRUE</u> RE decrease as from there comes to the funds. The total SE does not change it change his composition.

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