Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver

Exercise 22

Comparing and contrasting cash and stock dividends
Compare and contrast the accounting for cash dividends and stock dividends.
Requirement
1. In the space provided, insert either "Cash dividends," "Stock dividends," or "Both cash dividends and stock dividends" to complete each of the following statements.
a. _______________decrease Retained earnings.
b. _______________has (have) no effect on a liability.
c. _______________ increase paid-in capital by the same amount that they decrease Retained earnings.
d. _______________decrease both total assets and total stockholders' equity, resulting in a decrease in the size of the company.