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:

Undercapitalization

The lack of funds to operate a business normally.

Small-Business Failure

A situation where a small-sized business is unable to continue operation due to financial, managerial, or market-related problems.