The Entry to Record the Distribution of a Stock Dividend

question 93

Multiple Choice

The entry to record the distribution of a stock dividend includes a:

• A)credit to Common Stock and a debit to Retained Earnings.
• B)debit to Retained Earnings and a credit to Stock Dividends Payable.
• C)debit to Stock Dividends Payable and a credit to Stock Dividends.
• D)debit to Stock Dividends Payable and a credit to Retained Earnings.

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Definitions:

Horizontal Merger

The combination of two or more firms operating in the same industry and at the same stage of production.

Vertical Merger

A merger between two companies that operate at different levels in the production process of the same industry.

Small Business

An independently owned and operated company that is limited in size and revenue, depending on the industry.

Direct SBA Loans

Loans provided directly by the Small Business Administration to small businesses that meet certain qualifications.