When Stock Dividends Are Distributed

question 176

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 Value is debited if it is a small stock dividend.
• D) no entry is necessary if it is a large stock dividend.

---

Definitions:

Biotic Potential

The maximum reproductive capacity of an organism under optimum environmental conditions.

Environmental Resistance

Total of factors in the environment that limit the numerical increase of a population in a particular region.

Carrying Capacity

The maximum population size of a species that an environment can sustain indefinitely, given the food, habitat, water, and other necessities available in the environment.

Exponential Growth

Growth, particularly of a population, in which the increase occurs in the same manner as compound interest.