The Issuer of a 5% Common Stock Dividend (Small Stock

question 32

Multiple Choice

The issuer of a 5% common stock dividend (small stock dividend) to common stockholders should debit stock dividends for an amount equal to the

• A)Book value of the shares issued.
• B)Par or stated value of the shares issued.
• C)Market value of the shares issued.

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Definitions:

Assets

Resources or items of value that an individual or organization owns or controls with the expectation that it will provide future benefit.

Resources Owned

Assets or possessions that are held by an individual, an organization, or a country.

Proprietorship

A business owned and operated by a single person, making it the simplest form of business ownership.

Business Owned

Refers to entities such as companies or enterprises that are possessed and controlled by one or more persons or other businesses.