The declaration and issuance of a stock dividend A)increases total shareholders' equity. B)does not change total shareholders' equity. C)increases current liabilities. D)does not change total retained earnings.

Question

Quizplus · Accepted Answer

The declaration and issuance of a stock dividend does not change the total shareholders' equity. It reallocates part of the retained earnings to the common stock account but the total equity remains the same.

The Declaration and Issuance of a Stock Dividend