Which of the following statements about stock dividends is true?

a) Stock dividends reuce a company's cash balance.

b) A stock dividend has no effect on total SHE.

c) A stock dividend decreases total SHE

. d) A stock dividend ordinarily will increase total SHE.

2 Rob asks for your help understanding some charactoristics of a corporation.

3.)Explain each of the following to Rob

: a) separate legal status

b) Limited liability of stockholders

c) Transerable ownership rights

3.) Identify the events that result in credits and debits to retained earnings.