What effect will the declaration and distribution of a stock dividend have on net income and cash flows?

Question

Quizplus · Accepted Answer

Declaration and distribution of a stock dividend does not affect net income or cash flows as it only involves transferring part of the company's retained earnings to the common stock account. It does not involve any inflow or outflow of cash and does not affect the company's profits or losses. Therefore, option A is the correct answer.

What Effect Will the Declaration and Distribution of a Stock