The Amount Transferred Out of Retained Earnings When a 4

question 31

True/False

The amount transferred out of retained earnings when a 4% stock dividend is declared is equal to the prevailing market value per share times the number of dividend shares to be distributed.

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Definitions:

Intangible Assets

Non-physical assets of value to a company, such as patents, trademarks, goodwill, and copyrights.

Normal Account Balance

The typical or expected balance of an account, where asset and expense accounts are usually debit balances and liability, equity, and revenue accounts are credit balances.

Revenue Account

An account that tracks the income a company generates from its business activities.

Compound Entry

An accounting entry that involves more than two accounts, recording multiple debits and/or credits in a single transaction.