Question Details

A stockholder who receives a stock dividend 



1.	The board of directors must assign a per share value to a stock dividend declared that is
a.	greater than the par or stated value.
b.	less than the par or stated value.
c.	equal to the par or stated value.
d.	at least equal to the par or stated value.

	2.	Corporations generally issue stock dividends in order to
a.	increase the market price per share.
b.	exceed stockholders' dividend expectations.
c.	increase the marketability of the stock.
d.	decrease the amount of capital in the corporation.

	3.	A stockholder who receives a stock dividend would
a.	expect the market price per share to increase.
b.	own more shares of stock.
c.	expect retained earnings to increase.
d.	expect the par value of the stock to change.

4.	When stock dividends are distributed,
a.	Common Stock Dividends Distributable is decreased.
b.	Retained Earnings is decreased.
c.	Paid-in Capital in Excess of Par is debited if it is a small stock dividend.
d.	no entry is necessary if it is a large stock dividend.

	5.	A small stock dividend is defined as
a.	less than 30% but greater than 25% of the corporation's issued stock.
b.	between 50% and 100% of the corporation's issued stock.
c.	more than 30% of the corporation's issued stock.
d.	less than 20-25% of the corporation's issued stock.




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