The term "capitalizing retained earnings" refers to:
A)transferring from Retained Earnings to Common Stock the amount of a stock dividend.
B)the recording of all costs to get an asset in place and ready for its intended use.
C)the issuance of common stock at a price in excess of par value.
D)stockholders contributing additional capital to a corporation.

Question

Quizplus · Accepted Answer

Stock dividends are recorded by transferring an amount from Retained Earnings to Common Stock (and possibly other contributed capital accounts).This transfer is called "capitalizing retained earnings."

The Term "Capitalizing Retained Earnings" Refers To