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:

Bond

A fixed-income investment in which an investor loans money to an entity (corporate or governmental) which borrows the funds for a defined period at a variable or fixed interest rate.

Sell

To sell means to exchange a product or service for money or other goods.

Serial Bonds

Bonds issued in a series, each one of which has a different maturity date and thus comes due at a different time.

Maturities

The term dates on which debts or investments are due to be paid or settled.