Which of the Following Is True of a Stock Dividend

Multiple Choice

Which of the following is true of a stock dividend?

A) Transfers a portion of equity from retained earnings to a cash reserve account.
B) The decision to declare a stock dividend resides with the shareholders.
C) Reduces a corporation's assets and stockholders' equity.
D) It is a liability on the balance sheet.
E) Does not affect total equity, but transfer amounts between the components of equity.