Unlike a Stock Split,a Stock Dividend Requires a Formal Journal

question 61

Multiple Choice

Unlike a stock split,a stock dividend requires a formal journal entry in the financial accounting records because stock dividends

• A) represent a transfer from Retained Earnings to Capital Stock.
• B) increase the stockholders' equity in the issuing firm.
• C) are payable on the date they are declared.
• D) increase the relative book value of an individual's stock holdings.