The declaration and distribution of a stock dividend will
A)increase total shareholders' equity.
B)increase total assets.
C)decrease total assets.
D)have no effect on total assets.

Question

Quizplus · Accepted Answer

A stock dividend does not affect total assets as it involves the reallocation of retained earnings to paid-in capital, leaving total shareholders' equity and total assets unchanged.

The Declaration and Distribution of a Stock Dividend Will