When a Stock Dividend of Less Than 20−25% Is Declared

question 90

Multiple Choice

When a stock dividend of less than 20−25% is declared and the market value exceeds the par or stated value of the shares, an amount equal to the market value of the shares to be distributed should be charged (debited) to which of the following accounts?

• A) Stock Dividends
• B) Stock Dividends Distributable
• C) Paid-In Capital in Excess of Par
• D) Capital Stock

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Definitions:

Auscultating

The act of listening to the internal sounds of the body, typically using a stethoscope, for medical diagnosis.

Fingernails

Hard, flat structures made of keratin at the tips of fingers, serving protective and functional purposes.

Turgor

The state of being swollen or distended, typically used to describe the elasticity of the skin as an indicator of hydration and health.

Dehydration

A condition resulting from excessive loss of body water, leading to imbalances in essential minerals and electrolytes.