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:

Implied Warranty

A legal presumption that a product will fulfill the basic functions for which it was sold, without being explicitly stated by the seller.

Merchantability

Concerns the basic standard of quality and functionality that goods sold must meet, implying they are fit for the general purpose for which they are sold.

Fitness

A state of health and well-being, often focused on the ability to perform physical activities or meet specific physical criteria.

Disclaimer

A statement that denies responsibility, limiting one's legal liability.