Which of the Following Statements Concerning Stock Dividends Is Correct

question 126

Multiple Choice

Which of the following statements concerning stock dividends is correct?

• A)A stock dividend cannot use treasury stock.
• B)The issuance of a stock dividend increases total stockholders' equity.
• C)The declaration of a stock dividend should not be recorded as a liability even though it has not yet been issued.
• D)Courts generally have held that stock dividends, once declared, are irrevocable by the board of directors; therefore, a stock dividend declared, but not yet issued is a liability.

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Definitions:

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Hormone secreted by the adrenal cortex that regulates the sodium and potassium ion balance of the blood.