When Stock Dividends Are Distributed

question 91

Multiple Choice

When stock dividends are distributed

• A) Common Stock Dividends Distributable is decreased.
• B) Retained Earnings is decreased.
• C) Paid-in Capital in Excess of Par is debited if it is a small stock dividend.
• D) no entry is necessary if it is a large stock dividend.

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Definitions:

Debtor Disclosure

The requirement for debtors to reveal complete financial information to their creditors, including assets, liabilities, income, and expenses, to ensure transparency in financial relationships.

Restructuring Agreement

A restructuring agreement involves renegotiating the terms of existing debts or obligations, typically to provide relief to a distressed company.

Per-share Information

Information presented on a per-share basis, typically used to describe financial metrics like earnings or dividends attributed to a single share of a company's stock.

Modification Of Terms

Changes made to the terms of a contract, including loans and agreements, to adjust the obligations of the parties involved.