When a company issues a stock dividend of any size, which of the following would be affected?
A) Earnings per share.
B) Total stockholders' equity.
C) Total liabilities.
D) Total assets.

Question

Quizplus · Accepted Answer

When a company issues a stock dividend, earnings per share decreases as the number of shares outstanding increases. There is no effect on total assets, total liabilities, or total stockholders' equity.

When a Company Issues a Stock Dividend of Any Size