A bonus issue or share dividend reduces a corporation's assets and its shareholders' equity.

Name: A bonus issue or share dividend reduces a corporation's assets and its shareholders' equity.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A bonus issue or share dividend does not reduce a corporation's assets or shareholders' equity. Instead, it simply redistributes the existing equity among shareholders by increasing the number of shares outstanding. The total value of equity remains the same, but each shareholder owns a smaller percentage of it.

A Bonus Issue or Share Dividend Reduces a Corporation's Assets