When a Stock Dividend Is Declared, Which of the Following

question 77

Multiple Choice

When a stock dividend is declared, which of the following accounts is credited?

• A) Common Stock
• B) Dividends Payable
• C) Stock Dividends Distributable
• D) Retained Earnings

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Definitions:

Financial Advantage

The benefit gained from making a financially prudent decision that leads to wealth accumulation, cost savings, or any other monetary gain.

Dropping Product

The decision to discontinue the production and sale of a product line or item, typically due to it not meeting financial or strategic goals.

Contribution Margin

The amount remaining from sales revenues after all variable expenses are paid, contributing towards covering fixed costs and profit.

Discontinue

To stop making or providing a product or service, often as a strategic decision by a company.