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.

---

Definitions:

Hypothalamus

A neural structure lying below (hypo) the thalamus; it directs several maintenance activities (eating, drinking, body temperature), helps govern the endocrine system via the pituitary gland, and is linked to emotion and reward.

Endocrine Glands

Glands in the body that release hormones directly into the bloodstream, regulating various bodily functions.

Motor Neurons

Nerve cells forming part of the nervous system that initiate and regulate the contraction of muscles.

Serotonin

A neurotransmitter involved in regulating mood, sleep, appetite, and pain.