The Entry to Record a Stock Dividend Depends on Its

question 123

Multiple Choice

The entry to record a stock dividend depends on its size. Which of the following percentages is the upper limit for a stock dividend to be classified as a small stock dividend?

• A) 20%
• B) 10%
• C) 15%
• D) 25%

---

Definitions:

Work In Process

Stock comprising products that are currently being manufactured but are not yet finished.

FIFO Method

A method of inventory valuation where the first items produced or purchased are the first ones to be expended or sold.

Equivalent Units

Units of production expressed in terms of fully completed units; a concept used in manufacturing to measure output in a period that factors in incomplete units.

Material

The substance or substances from which something is made or can be made, often used in reference to supplies used in manufacturing.