If a Corporation Declares and Distributes a 10% Stock Dividend

question 62

Multiple Choice

If a corporation declares and distributes a 10% stock dividend on its common shares,the account debited is:

• A)Dividends Payable.
• B)Common Stock.
• C)Share Capital.
• D)Retained Earnings.

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Definitions:

Dealer Charged

The price or fee a dealer applies to a product or service, usually including their markup over the wholesale or dealer price.

Exact Simple Interest

A calculation method where interest is determined using the actual number of days in a loan period over a 360 or 365-day year, depending on the terms.

365-Day Year

The 365-Day Year is a time measurement convention considering a year to have exactly 365 days, ignoring leap years.

Ordinary Simple Interest Rate

The standard rate at which interest is calculated on a loan or investment, based on the original principal amount only.