Bryan & Bales Has Just Declared a 15% Stock Dividend

question 143

Multiple Choice

Bryan & Bales has just declared a 15% stock dividend. The current price of the stock is above the par value. All other things being equal, which of the following account balances will be affected by the stock dividend?

• A)Common Stock
• B)Paid in Excess
• C)Retained Earnings
• D)All of these account balances will be affected
• E)None of these account balances will be affected.

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Definitions:

Accounts Payable

Liabilities representing amounts owed by an entity to suppliers or creditors for goods or services received but not yet paid for.

Multiple-Step Income Statements

A detailed financial statement that separates operating revenues and expenses from non-operating ones, showcasing multiple layers of profitability.

FASB

The Financial Accounting Standards Board, an organization responsible for establishing and improving financial accounting standards in the U.S.

IASB

Stands for the International Accounting Standards Board, which is an independent, private-sector body that develops and approves International Financial Reporting Standards (IFRSs).