A Corporation Should Account for the Declaration of a 10

question 97

Multiple Choice

A corporation should account for the declaration of a 10 percent stock dividend by

• A)transferring from retained earnings to contributed capital an amount equal to the legal capital represented by the dividend shares.
• B)transferring from retained earnings to contributed capital an amount equal to the market value of the dividend shares.
• C)transferring from retained earnings to contributed capital whatever amount the board of directors deems appropriate.
• D)making only a memorandum entry in the general journal.

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Definitions:

Oppositional Defiant Disorder (ODD)

A behavioral disorder characterized by chronic patterns of uncooperative, defiant, and hostile behavior towards authority figures.

Intellectual Development Disorder (IDD)

A disorder characterized by limitations in intellectual functioning and adaptive behavior, presenting itself during the developmental period.

Tic Disorder

A condition characterized by sudden, rapid, nonrhythmic movements or vocalizations that are involuntary.

Mute

A condition or state in which a person is unable or unwilling to speak, sometimes due to psychological or physical reasons.