Which Statement About "Stock Dividends" Is Correct

question 67

Multiple Choice

Which statement about "stock dividends" is correct?

• A)Only a memo entry is needed for this transaction.
• B)No entry is needed in the accounting records.
• C)A journal entry is needed for this transaction.
• D)This is the same as a stock split for accounting purposes.

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Definitions:

Variance Accounts

Accounts used in managerial accounting to record the differences between actual costs and standard (budgeted) costs.

Direct Material Price Variance

The difference between the actual cost of direct materials and the standard cost multiplied by the actual quantity used.

Costs Of Goods Sold

Direct costs attributable to the production of goods sold by a company, including materials and labor, but excluding indirect expenses such as sales and distribution costs.

Standard Costs

Benchmark costs established for the purpose of assessing financial performance and identifying variances in production or operations.