Which of the following balance sheet accounts are affected by a small stock dividend?
I.cash
II.common stock
III.retained earnings
IV.capital in excess of par value
A)I and III only
B)II and III only
C)II and IV only
D)II, III, and IV only
E)I, II, III, and IV

Question

Quizplus · Accepted Answer

A small stock dividend affects common stock (II) by increasing it, retained earnings (III) by decreasing it, and capital in excess of par value (IV) by increasing it. Cash (I) is not affected.

Which of the Following Balance Sheet Accounts Are Affected by a Small