When a dividend is declared and paid in stock * Choices; stockholders' equity does not change. total stockholders' equity decreases. the current ratio increases. the amount of working capital decreases.

When a dividend is declared and paid in stock * Choices; stockholders' equity does not change. total stockholders' equity decreases. the current ratio increases. the amount of working capital decreases.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 16MCQ

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Question

When a dividend is declared and paid in stock *

Choices;

stockholders' equity does not change.

total stockholders' equity decreases.

the current ratio increases.

the amount of working capital decreases.

Definition Definition Assets available to stockholders after a company's liabilities are paid off. Stockholders’ equity is also sometimes referred to as owner's equity. A stockholders’ equity or book value generally includes common stock, preferred stock, and retained earnings and is an indicator of a company's financial strength.

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