5A

Which of the following statements about stock dividends is true?

a.

Stock dividends increase the number of shares outstanding.

b.

Stock dividends have no impact on the retained earnings.

c.

Stock dividends have no impact on the number of shares issued.

d.

Stock dividends require cash financing.

Clear my choice

Question 5 B

Question text

Which of the following is not a source of accounting distortion?

a.

Restated prior year's income statement for discontinued operation.

b.

Change of useful life of production facility.

c.

Amortization of copyright.

d.

Cut in employees' fringe benefits.