A Corporation Should Account for the Declaration of a 10

question 97

Multiple Choice

A corporation should account for the declaration of a 10 percent stock dividend by

• A)transferring from retained earnings to contributed capital an amount equal to the legal capital represented by the dividend shares.
• B)transferring from retained earnings to contributed capital an amount equal to the market value of the dividend shares.
• C)transferring from retained earnings to contributed capital whatever amount the board of directors deems appropriate.
• D)making only a memorandum entry in the general journal.

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Definitions:

Adaptive

Characterizing an ability or tendency to adjust effectively to new conditions or environments.

Imperative

Describes something that is absolutely necessary or required, often used in the context of commands or duties.

Integration Imperative

The perceived need or policy goal of integrating diverse groups into a cohesive and functioning society, emphasizing unity and cooperation.

Social System

Refers to a complex set of human relationships interacting in many ways and at multiple levels, including institutions, organizations, and individuals.