When a Corporation Declares a 5% Stock Dividend,the Journal Entry

question 150

Multiple Choice

When a corporation declares a 5% stock dividend,the journal entry will include:

• A) debit retained earnings and credit a liability
• B) debit common shares and credit retained earnings
• C) debit retained earnings and credit common stock dividend distributable
• D) debit retained earnings and credit common shares

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Definitions:

Valuation Risk

The potential for loss that arises from inaccuracies or errors in assessing the value of assets, liabilities, or investments.

Micro Political Risk

Micro political risk involves the impact of political decisions, events, or conditions on an individual firm's operations and performance, as opposed to the broader industry or economic segment.

Macro Political Risk

Adverse political actions that affect all foreign investments and operations in a host country.

Reputational Risk

The potential for loss resulting from damages to a firm's reputation, which can affect its business operations and financial performance.