How would the declaration of a 20 percent stock dividend by Astros Corporation affect each of the following on Astros' balance sheet? Retained Total Stock-
Earnings holders' Equity
A) Decrease Decrease
B) Decrease No effect
C) No effect Decrease
D) No effect No effect

Question

Quizplus · Accepted Answer

A stock dividend redistributes a portion of retained earnings to common stock, decreasing retained earnings but not affecting total stockholders' equity, as it's an internal transaction.

How Would the Declaration of a 20 Percent Stock Dividend