The declaration of a stock dividend will
A) change the total of shareholders' equity.
B) increase total liabilities.
C) increase total assets.
D) increase share capital.

Question

Quizplus · Accepted Answer

The declaration of a stock dividend will increase the share capital, as more shares will be issued to existing shareholders. It does not affect total assets or liabilities, but it will change the total of shareholders' equity due to the increase in share capital.

The Declaration of a Stock Dividend Will