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Generally Accepted Accounting Principles (GAAP) MCQs

Why would a company issue stock dividend?

Because shareholders prefer stock to cash

Because they can issue the stock of any corporation to the shareholders

Because it involves lower tax impact to both the shareholders and the corporation

Because no cash outlay is required while the shareholders are still rewarded

Answer

Correct Answer: Because no cash outlay is required while the shareholders are still rewarded

Explanation:

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More Generally Accepted Accounting Principles (GAAP) MCQ Questions

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