Contrast the effects of a cash dividend and a stock


Question: 1. Contrast the effects of a cash dividend and a stock dividend on total assets, total liabilities, and total stockholders' equity.

2. What happens to the par value, the share's trading price, and the number of shares outstanding in a 2-for-1 stock split?

3. Indicate the correct order in which to report the following accounts in the stockholders' equity section of the balance sheet: Additional Paid-in Capital, Common Stock, Preferred Stock, Treasury Stock, and Retained Earnings.

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Finance Basics: Contrast the effects of a cash dividend and a stock
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