Question Details

The declaration of a stock dividend 



1.	The per share amount normally assigned by the board of directors to a large stock dividend is
a.	the market value of the stock on the date of declaration.
b.	the average price paid by stockholders on outstanding shares.
c.	the par or stated value of the stock.
d.	zero.

	2.	The per share amount normally assigned by the board of directors to a small stock dividend is
a.	the market value of the stock on the date of declaration.
b.	the average price paid by stockholders on outstanding shares.
c.	the par or stated value of the stock.
d.	zero.

	3.	Identify the effect the declaration and distribution of a stock dividend has on the par value per share.
a.   Increase
b.   Decrease
c.   Increase or decrease
d.   No effect

	4.	The declaration of a stock dividend will
a.	increase paid-in capital.
b.	change the total of stockholders' equity.
c.	increase total liabilities.
d.	increase total assets.

5.	Which of the following show the proper effect of a stock split and a stock dividend?
		Item		Stock Split	Stock Dividend
a.	Total paid-in capital	Increase	Increase
b.	Total retained earnings	Decrease	Decrease
c.	Total par value (common)	Decrease	Increase
d.	Par value per share	Decrease	No change




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