Question

A stock dividend __________ the assets, liabilities, or total stockholders' equity of a corporation.

A) does not change
B) increases
C) decreases
D) None of these choices are correct.

Answer 1

A stock dividend increases the total stockholders' equity of a corporation.

Step-by-step explanation:

A stock dividend increases the total stockholders' equity of a corporation. When a company issues a stock dividend, it distributes additional shares of its stock to its existing shareholders as a form of payment. This increases the number of outstanding shares, which in turn increases the equity held by the shareholders.