The declaration and issuance of a stock dividend does NOT affect the total amount of a corporation's assets,liabilities,or stockholders' equity.

Question

Quizplus · Accepted Answer

When a corporation declares and issues a stock dividend, it is simply transferring a portion of its retained earnings to the common stock account, which increases the number of shares outstanding and reduces the par value per share. This transaction does not affect the total amount of assets, liabilities, or stockholders' equity of the corporation. Therefore, the statement is true.

The Declaration and Issuance of a Stock Dividend Does NOT