When a Stock Dividend Is Declared, Which of the Following

question 9

Multiple Choice

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

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

---

Definitions:

Simultaneously Increases

Occurring when two or more variables or conditions rise at the same time.

Supply Decreases

A situation where the quantity of a good or service that producers are willing to sell at a given price falls, often due to increased production costs or external factors.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Close Substitute

A good or service that can easily replace another, fulfilling the same need or want, typically affecting consumer choice.