A stock dividend results in a capitalization of retained earnings with no corresponding decrease in total stockholders' equity.

Name: A stock dividend results in a capitalization of retained earnings with no corresponding decrease in total stockholders' equity.
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Question

Quizplus · Accepted Answer

A stock dividend involves transferring amounts from retained earnings to paid-in capital, which does not decrease the total stockholders' equity but rather redistributes the components within equity.

A Stock Dividend Results in a Capitalization of Retained Earnings