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 distribution of additional shares to shareholders, which only affects the equity section of the balance sheet, not the assets.

The Declaration and Distribution of a Stock Dividend Will