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

---

Definitions:

Marketing Concept

The philosophy of a business in which the wants and needs of customers are determined before goods and services are produced.

Competitive Advantage

A situation or factor that gives a business a dominant or advantageous position over its rivals.

Marketing Strategy

A comprehensive plan formulated by businesses to achieve specific marketing objectives and targets over a specific time period.

Brand Image

The perception and attitude consumers have about a brand, its products, and services based on their experiences and communications.