If a corporation declares a 10% stock dividend on its common shares, the account to be debited on the date of declaration is
A)Stock Dividends Distributable.
B)Common Shares.
C)Share Capital.
D)Stock Dividends.

Question

Quizplus · Accepted Answer

A stock dividend is a distribution of additional shares to shareholders, and on the date of declaration, the Stock Dividends account is debited to recognize the obligation to issue additional shares.

If a Corporation Declares a 10% Stock Dividend on Its