What type of account is Stock Dividend Distributable?
A)contra contributed capital
B)contributed capital
C)contra asset
D)liability

Question

Quizplus · Accepted Answer

Stock Dividend Distributable is considered contributed capital because it represents an amount that is set aside to be converted into capital stock. It is not a contra account, asset, or liability, but rather an equity account that reflects the company's commitment to issue additional shares to shareholders as part of a stock dividend.

What Type of Account Is Stock Dividend Distributable