The Account to Be Debited When a Stock Dividend Is

question 3

Multiple Choice

The account to be debited when a stock dividend is declared and distributed on the same date would be:

• A)Common Stock-Par Value.
• B)Retained Earnings.
• C)Cash.
• D)Paid-In Capital in Excess of Par-Common.

---

Definitions:

Financial Capital

The money, credit, and other forms of funding that businesses use to invest in resources for future growth.

Opportunity Cost

Waiving prospective gains from various alternatives by settling on one option.

Foregone Alternative

The option or course of action that is given up when another is chosen; closely related to the concept of opportunity cost.

Opportunity Cost

The charge of rejecting the following prime opportunity in the process of decision-making.