DORA Company Declared and Distributed a 10% Stock Dividend on 20,000

question 44

Multiple Choice

DORA Company declared and distributed a 10% stock dividend on 20,000 shares of issued and outstanding $5 par value common stock.The market price per share on the declaration date was $9 and was $10 on the distribution date.Which of the following correctly describes the accounting for the declaration and distribution of the stock dividend?

• A)Retained earnings decreased $20,000.
• B)Capital in excess of par increased $10,000.
• C)Common stock increased $18,000.
• D)Retained earnings decreased $18,000.

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The total amount of money that is invested within a country's borders by its residents and businesses.

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The difference between a country's total value of exports and its total value of imports, indicating whether a country is a net exporter or importer.

Net Capital Outflow

The difference marked by domestic people's foreign asset purchases compared to foreign people's domestic asset acquisitions.

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