Which One of the Following Events Would Not Require a Formal

question 169

Multiple Choice

Which one of the following events would not require a formal journal entry on a corporation's books?

• A) 2 for 1 stock split
• B) 100% stock dividend
• C) 2% stock dividend
• D) $1 per share cash dividend

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Definitions:

Bankruptcy

A legal proceeding for liquidating or reorganizing a business. Also, the transfer of some or all of a firm’s assets to its creditors.

Debt Restrictions

Clauses or covenants in a loan agreement that limit or restrict the borrower's actions to protect the lender’s interests.

Restructuring Debt

The process of renegotiating the terms of existing loans to improve financial stability.

Composition

The makeup or structure of something, in finance it might refer to the mix of assets in a portfolio or ingredients of a financial product.