If a Corporation Declares a 10% Stock Dividend on Its

question 276

Multiple Choice

If a corporation declares a 10% stock dividend on its common stock, the account to be debited on the date of declaration is

• A) Common Stock Dividends Distributable.
• B) Common Stock.
• C) Paid-in Capital in Excess of Par.
• D) Retained Earnings.

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Definitions:

Pentanal

A five-carbon straight-chain aldehyde with the formula C5H10O, characterized by having a terminal carbonyl group.

Ethylamine

A simple organic compound (C2H5NH2) characterized by an ethyl group attached to an amine group, used in chemical synthesis.

Acid Catalysis

A process where an acid is used to accelerate a chemical reaction, often by increasing the concentration of hydrogen ions in the reaction environment.

Organic Product

A compound or substance that has been derived from living organisms and contains carbon.