Stock Dividends Distributable is classified as a(n)
A) asset account.
B) shareholders' equity account.
C) expense account.
D) liability account.

Question

Quizplus · Accepted Answer

Stock Dividends Distributable is classified as a shareholders' equity account because it represents a distribution of additional shares to shareholders, which increases the common stock and additional paid-in capital accounts once distributed.

Stock Dividends Distributable Is Classified as A(n)